CarMax CEO Keith Barr Outlines Turnaround Plan for Used-Car Giant

Keith Barr stepped into the top job at CarMax's Goochland County headquarters on March 16, bringing an unusual resume to one of the Richmond area's largest employers: his most recent post was running InterContinental Hotels Group, a hospitality company with more than 6,000 properties across 100 countries and 345,000 employees worldwide.

One day after taking office, Barr published an open letter outlining his priorities for the used-car retailer, which has been buffeted by declining consumer demand and margin pressure stemming from vehicles acquired at peak prices. The letter arrives at a turbulent moment for CarMax, which has moved through multiple leadership changes and rounds of layoffs at its Goochland County headquarters and locations nationwide in recent months.

"A car is one of the most important purchases American families make, and today's consumer is increasingly seeking value and a customized shopping experience," Barr wrote. "I'm excited to lead this great company into its next chapter of growth, building on more than three decades of market leadership."

Barr's appointment caps a swift executive transition. Last fall, CarMax announced that longtime CEO Bill Nash, who had led the company since 2016, would depart on December 1. David McCreight stepped in as interim president and CEO before the board settled on Barr. With Barr now in place, McCreight will return to his prior role as an independent director of the board. Tom Folliard, serving as interim executive chair, will remain in that position until the company's annual meeting in June, after which he is expected to resume his duties as non-executive chair.

Folliard was direct about why the board chose an outsider from the hospitality industry. "His decades of leadership experience and proven ability to enhance the customer experience, lead digital transformations, build brand loyalty, and effectively integrate online and physical properties make Keith the right choice to lead CarMax through a critical juncture and drive the company's next chapter of growth," Folliard said.

CarMax describes itself as the nation's largest used-vehicle retailer, with more than 250 store locations and approximately 28,000 employees. In the fiscal year ending February 28, 2025, the company sold roughly 790,000 used vehicles directly to consumers and another 540,000 wholesale vehicles through its auctions. CarMax Auto Finance originated more than $8 billion in auto loans during the same period.

Those numbers reflect a company of considerable scale, but the competitive and economic environment has grown more punishing. Inflationary pressures have pushed cash-conscious buyers to delay purchases and hold onto older vehicles longer, squeezing both volume and margins. CarMax has responded with cost-cutting measures including job cuts and, beginning March 1, a requirement that corporate employees work in the office four days a week, a policy announced last fall.

Barr signaled he intends to lean into both physical and digital channels rather than treat them as competing priorities. "CarMax is uniquely positioned to capture this opportunity by delivering the best value and service across both in-person and online channels, leveraging its transparent pricing, extensive inventory, and flexibility to shop however customers prefer," he said.