Macy's CEO Lundgren to Step Down Next Year--Update
June 23 2016 - 10:12AM
Dow Jones News
By Austen Hufford
Macy's Inc. Chief Executive Terry Lundgren will step down from
that role next year, as the company struggles to adapt to changing
consumer demands.
Company President Jeff Gennette will take over as CEO, a move
the company said was part of its succession plan. Mr. Lundgren, who
has been CEO since 2003, will remain chairman.
In May, Macy's, the country's largest department-store chain,
reported its worst quarterly sales since the recession, setting off
fresh fears about the health of the U.S. retail sector.
Many of America's traditional retail stores have struggled to
adapt to the shift toward online shopping and fast-fashion chains.
Many have responded by closing weaker locations and investing in
e-commerce but the moves haven't been enough to counter weak
demand.
"Now is the time to reset our business model to thrive in a
future that is being driven by rapid evolution in consumer
preferences and shopping habits," Mr. Lundgren said.
Mr. Gennette, who is 55, was named president of Macy's in March
2014 after being chief merchandising officer since 2009. He began
his retail career in 1983 as an executive trainee at Macy's
West.
Under Mr. Lundgren's tenure, Macy's in 2005 -- then called
Federated Department Stores Inc.-- bought rival and No. 2
department store chain May Department Stores Co. for about $11.5
billion.
The company also doubled down on its Macy's brand, changing its
corporate name from Federated and rebranding its regional stores to
the Macy's nameplate.
Today, Macy's operates about 870 stores in 45 states under its
namesake brand as well as Bloomingdale's.
Shares of Macy's fell 1.1% to $32.44 in premarket trading on
Thursday.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
June 23, 2016 09:57 ET (13:57 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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