- Mike Mohan, President and Chief Operating Officer of Best Buy, is stepping down from office effective July 1st, according to a securities filing.
- The retailer said it did not plan to take on the COO role after Mohan left. Instead, it is planned to split his responsibilities among the Best Buy management team.
- Upon departure, Mohan will receive $ 1 million in cash in lieu of the annual incentive pay for the year.
Mohan started Best Buy 17 years ago in 2004 as a Vice President of the Business Group Digital Imaging. He worked his way up to Chief Merchandising and Marketing Officer before becoming COO. In 2019, he assumed the president title at the same time Corie Barrie became CEO, after serving as the retailer’s CFO and chief transformation officer.
A lot has happened in the course of Mohan’s career at Best Buy: the bankruptcy and liquidation of rival Circuit City, Amazon’s rise as a powerhouse in the electronics category, a broad consumer shift towards more online and less in-store purchases, An ambitious and mostly successful overhaul and reversal of the Best Buy deal, as well as a massively disruptive pandemic, to name a few.
Best Buy’s transformation has been hailed as a role model for the industry as the retailer shifted its resources to digital shopping and omnichannel fulfillment models while improving its services to give customers a reason to spend with the company.
Prior to becoming COO, Mohan oversaw the launch of thousands of stores within a business with technology providers, as well as the expansion and development of Best Buy’s private labels and new categories such as fitness and smart home products, according to the company.
Under Mohan, Best Buy’s business came under massive strain last year when COVID-19 began spreading in the United States. In this environment, the company showed its strength when previous investments paid off. The company had strong year-round three-digit online sales growth as it shifted to digital sales and omnichannel fulfillment options like roadside delivery.
In a note to the Minneapolis StarTribune staff, Barry said of Mohan: “As his friend, I took pride in his willingness to leave a company he loves and pursue his desire to do more. As his colleague, I was really sad about the idea that I couldn’t rely on his advice and knowledge for so long. “
In the note quoted by StarTribune, Barry said that Vice Presidents Rob Bass (supply chain and global real estate), Damien Harmon (omnichannel operations) and Jason Bonfig (merchandising) will report directly to them on Mohan’s exit.
Analysts of the Telsey Advisory Group deal with Mohan’s departure in a research report and assume that Best Buy as “Long-time winner “in the industry”. While Mr. Mohan’s leadership is missing at Best Buy, the company has a deep bank of strong executives to continue running and transforming the company, “the analysts said.