Tags: macy | ceo | terry lundgren

Macy's CEO Lundgren to Step Down in 2017

Image: Macy's CEO Lundgren to Step Down in 2017
(AP)

Thursday, 23 Jun 2016 05:56 AM

Macy's Inc. said Terry Lundgren will step down as chief executive next year and be succeeded by former chief merchandising officer Jeff Gennette, as the department store operator looks to revive sales amid stiff competition from online retailers.

Shares of the company, which has reported falling sales for the last five quarters, rose as much as 5 percent to $34.41 in morning trading on Thursday.

Lundgren, 64, who has been the company's CEO for more than 13 years, will step down from that post in the first quarter of 2017 but continue as executive chairman.

Gennette, 55, who is currently president of the company, began his retail career in 1983 as an executive trainee at Macy's West, a former unit of Macy's.

Macy's sales nearly doubled during Lundgren's tenure and he helped establish Macy's and Bloomingdale's as national brands, the company said.

However, Macy's has been hit by falling apparel sales and a strong dollar that has discouraged tourist spending at its stores as well as growing competition from off-price retailers such as TJX Cos. Inc. and online retailers such as Amazon.com.

In response, the company has announced a raft of measures, including shutting stores, opening off-price stores and starting a Chinese joint venture with Alibaba Group Holding Ltd. to open an online store.

The company is also in talks for partnerships or joint ventures for its flagship and mall-based stores, after coming under pressure from activist investor Starboard Value LP, which has valued the company's real estate at about $21 billion.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Companies
Macy's Inc. said Terry Lundgren will step down as CEO in the first quarter of 2017, as part of the struggling department store operator's plans to revamp its business and improve sales.
macy, ceo, terry lundgren
252
2016-56-23
Thursday, 23 Jun 2016 05:56 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved