Michaels Companies Names Walmart Executive Ashley Buchanan As New CEO, Second In Two Months
Michaels Companies has announced its second chief executive officer in just two months. The country’s largest crafts and arts retailer has named Walmart veteran Ashley Buchanan as a new CEO. The move comes as the retailer is working on expanding its customer base and trying to compete against online giants like Amazon. Buchanan will become the company’s president and designated CEO on January 6. He will formally replace current CEO Mark Cosby in April after a transition period, reads a statement issued by the company. Cosby, who named as CEO two months ago, will remain on the company’s board, the company said.
Buchanan, who has been with Walmart for several years, most recently served as the chief merchandising and chief operating officer for Walmart’s e-commerce division. Earlier to this, he served in the same position for Sam’s Club, a Walmart subsidiary. Commenting on the development, Buchanan said that he’s excited about the tremendous opportunity. “Michaels is an iconic brand. I am super excited about the opportunities to redefine and reimagine the experience of our Makers,” he said in a statement. Buchanan said that he believes that the company can engage ‘makers’ in innovative ways and take Michaels to a new level.
The Texas-based company has over 1,200 stores in the United States and Canada. It has an internet presence as well. But like other traditional retailers, it has been trying hard to strengthen its foothold as consumers are shifting towards online shopping. With more and more people opting for online shopping, Michaels’ shares fell 15 percent. The shares fell after it reported sales at stores falling 2.2 percent in the third quarter compared to 2018. The company has even lowered its guidance for sales. Last year, Michaels shut down all of its Aaron Brothers framing and art supplies stores. However, its shares were up by over 15 percent after the announcement about the new CEO was made. This year has seen over 1,480 chief executives leaving their position in November 2019. The figure is 12 percent higher when compared with the same period for the previous year.