Macy’s Inc. (NYSE: M) Chief Executive Officer, Terry Lundgren, will step down in the first quarter of 2017. Company President Jeff Gennette will take over as new CEO and is expected to turn the largest retailer in the U.S. around.
Lundgren, who has been the CEO for 13 years, will remain executive chairman, the Cincinnati-based company said in a statement on Thursday. According to the Wall Street Journal, when Mr. Lundgren took over 13 years ago, Macy’s operated around 394 department stores and 61 specialty stores and the revenue was about $15.44 billion. Now, Macy’s operates 870 stores, including Bloomingdale’s, and bought in $27.08 billion in revenue.
Macy’s has been struggling for the past recent years. Last month, Macy’s stated that their comparable stores sales reported a 5.6 percent decrease for the first quarter, which is the worst quarterly sales since the second quarter of 2009. The company faces challenges from online shopping and fast-fashion chains.
"I have been honored to lead this enterprise through a period of unprecedented reinvention. While our company is larger, stronger and more resourceful than we were 13 years ago, 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 in a statement. "Our company must and will change in response to the profound secular forces that are driving consumer spending."
Mr. Gennette, who became Macy’s president in March 2014, previously served as chief merchandising officer for five years. He began his retail career in Macy’s West in San Francisco in 1983.
Macy’s shares rose 2.29 percent to $33.56 as of early afternoon trading.