Keith Barr, the newly appointed president and CEO of CarMax, set out three priorities for the coming 2027 fiscal year, notably including an update for the used-car retailer’s e-commerce technology, to drive efficiency and improve customer experience — and, not least, to catch up with rivals like fast-growing Carvana.
“Technology will be key to improving our customers’ experience while making it easier for associates to serve them,” Barr, 55, said in a letter to shareholders, employees and customers.
The other two priorities Barr named were: one, to “Make CarMax the obvious choice,” and two, to “Act with urgency and intention.” The letter was published March 17. CarMax announced Barr’s appointment earlier, on Feb. 12, but it took effect March 16.
Making CarMax “the obvious choice” requires a fair, competitive price; quick access to a large, high-quality selection of vehicles; and an exceptional user experience, Barr said in the shareholder letter.
Acting with urgency and intention is just like it sounds. “We will change what is not working and double down on what is,” Barr said.
The priority on technology echoes Barr’s prior career in the hospitality industry. He was CEO of InterContinental Hotels Group from 2017 to 2023, then spent two years as a senior adviser to a private equity firm before joining CarMax.
On Barr’s watch as CEO, IHG modernized its technology and improved its customer experience, including adopting an innovative, digital reservation system, according to CarMax. Barr originally joined IHG from Bristol Hotels and Resorts, where he held various senior positions until IHG acquired it in 2000, CarMax said in a press release.
Barr’s emphasis on technology and user experience also dovetails with some concerns about CarMax, which a major CarMax shareholder, Starboard Value LP, expressed in a letter addressed to CarMax and Barr, dated March 10 and filed with the Securities and Exchange Commission.
“CarMax’s digital trade-in experience often requires multiple steps, photo uploads, and in many cases an in-person confirmation before finalizing an offer. By contrast, competitors may offer a more seamless, fully digital process,” said the letter, signed by Jeffrey Smith, Starboard Value’s managing member, CEO, and CIO.
“By simplifying and streamlining the digital offer process — fewer clicks, near-instant valuations, clearer steps — CarMax can capture a greater share of sellers already engaging online. Simply put, CarMax’s digital front end needs to be easier to use,” the Starboard Value letter said.
On March 11, CarMax notified shareholders that Starboard Value had nominated two directors for election to the CarMax board, to reflect Starboard Value’s approximately $350 million investment in the retailer. The board currently has 10 members, according to the CarMax investor relations website.
CarMax’s 2026 fiscal year ended Feb. 28. Its fourth-quarter earnings report is scheduled for April 14.
In its third fiscal-quarter earnings report, on Dec. 18, 2025, CarMax executives said that going forward, the company is adopting a back-to-basics approach after recent quarters where CarMax sales were down, and it had let its prices get too high.
Meanwhile, on Nov. 6, 2025, CarMax had announced then-CEO Bill Nash would step down from that position and from board membership. He joined CarMax in 1997 and had been president and CEO since September 2016.
Also on Nov. 6, the company launched a search for a permanent CEO. CarMax named David McCreight, who was already a board member, as interim president and CEO. Board Chair Tom Folliard was named interim Executive Chair. All those changes took effect Dec. 1.
With Barr’s appointment, McCreight reverts to being an independent director on the board, the company said. Assuming the changes are ratified at the next CarMax shareholders meeting in June, Folliard is expected to resume his prior duties as non-executive chair of the board.
Correction: Earlier versions of this story referred to tighter inventory at CarMax and other used-car retailers, but CarMax spokesperson Catherine Gryp said inventory was not an issue for CarMax in Q3.
