CarMax Taps Hotel Exec for Turnaround
CarMax has hired a veteran hotel industry executive to lead a turnaround at the used-vehicle retailer. The move reflects a trend of cross-industry leadership appointments aimed at bringing fresh perspectives to struggling consumer brands.
- The new executive is Keith Barr, who was previously the CEO of IHG Hotels & Resorts, one of the world's largest hospitality companies with brands like Holiday Inn and InterContinental. - Barr will take over as President and CEO on March 16, 2026, succeeding an interim CEO who stepped in after William D. Nash was terminated in November 2025. - The leadership change follows a difficult period for the company, which has faced several years of declining sales and saw its stock price fall by 53% in 2025. - In its most recent third-quarter report for fiscal year 2026, CarMax announced that its retail used unit sales had decreased by 8% and comparable store sales had declined by 9%. - Barr is known for leading a digital overhaul at IHG, where he modernized the company's technology and customer reservation system, experience that CarMax hopes to leverage. - The company has been implementing cost-cutting measures, including laying off 350 workers in October 2025 and another 230 in January 2026. - The broader used-vehicle market is facing significant headwinds, including a projected 25% to 30% drop in the availability of 5-to-6-year-old cars in 2026 due to pandemic-era production gaps. - CarMax has been losing ground to online-focused competitors; in one recent quarter, as CarMax's revenue fell 7%, rival Carvana posted a 44% increase in units sold.
