NEW YORK, June 23 (UPI) — The man who led Macy’s for nearly 15 years is stepping aside as chief executive at a time when the department store chain is facing big challenges.
Terry Lundgren is out as Macy’s CEO, the company said Thursday. Lundgren will leave at the end of the year, and Jeff Gennette, Macy’s president, will replace him in January. Lundgren, however, will remain as chairman.
Jeff Gennette began his career at Macy’s in 1983 as an executive trainee and worked his way up the corporate ladder over three decades.
The change is being made in the face of changing market conditions and consumer trends.
“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,” Lundgren said.
Macy’s, as well as other traditional department stores, have seen steady declines in sales in recent years — partly because of the prominence of online shopping, where retailers don’t have to operate large stores and employ large staffs.
The move comes not long after Macy’s reported disappointing earnings in the first quarter, which were the company’s lowest since the recession.
Lundgren has been Macy’s CEO since 2003.
Shares of Macy’s on Wall Street (NYSE: M) rose slightly by mid Thursday.
COMMENTS
Please let us know if you're having issues with commenting.