NEW YORK (AP) -- Department store retailer Kohl's Inc. says Michaels CEO and retail veteran Ashley Buchanan will take over its top job, effective January 15.

Buchanan succeeds Tom Kingsbury, who will stay as an advisor to the new CEO and retain his position on Kohl's board until his retirement in May 2025. Kingsbury served as Kohl's interim CEO in December 2022 and was named its permanent leader in February 2023.

Buchanan will assume the leadership of Kohl's at a time when the retailer has wrestled with sluggish sales. Its middle income shoppers have pulled back on discretionary spending in the face of still high prices for necessities. Like other department stores, it's also faced stiff competition from Walmart and Amazon, which have been improving their fashion offerings at affordable prices.

Wisconsin-based Kohl's has around 1,600 locations across the U.S.

Buchanan has been CEO of the arts and crafts retailer Michaels Cos. since 2020 and, prior to that, he has held a variety of senior executive roles at Walmart and Sam's Club during his 13 years at the company.

Buchanan significantly expanded Michaels' digital business and grew its small format stores, and simplified its merchandise strategy.

At Walmart, Buchanan held positions including chief merchandising and chief operating officer for Walmart's U.S. e-commerce division. Before that, he was chief merchant at Sam's Club where he led merchandising strategy, private brands, pricing, global sourcing, packaging and the supply network.

Buchanan joined Walmart from Dell where he held a variety of positions in finance, and Accenture, where he focused on the retail industry.

Kohl's shares fell nearly 5%, or 84 cents, to $17.50 in after market trading on Monday when the announcement was made. The company's stock was up nearly 8%, or $1.31 per share, to $18.34 in regular trading.