Macy's chief executive Terry Lundgren to step down
The US department store giant Macy's has said that its chief executive Terry Lundgren will step down in 2017.
Mr Lundgren will be replaced, in the first quarter, by Jeff Gennette, who is currently the firm's president. Macy's, the largest department store in the US, has been struggling to revive sales as it fights against growing online competition. Mr Gennette said Macy's needs to become a "significantly different retailer" to handle changing consumer preference. His appointment is part of a succession plan to help turn around the fortunes of Macy's. The company's share price rose 4% following the announcement. "We have successfully navigated our way through changing customer trends in the past and there is no doubt that Macy's Inc. will need to be a significantly different retailer in the future in the way we operate and approach the marketplace. But we also must continue to tackle our immediate priorities with vigour and discipline," Mr Gennette said. Working together Mr Gennette, 55, began working for Macy's in 1983. He served as Macy's chief merchandising officer from 2009 before taking on the role of president. In addition to becoming the new chief executive, Mr Gennette will also join Macy's board of directors effective immediately. Mr Lundgren will remain chairman of the board of Macy's. In a statement the company said "Lundgren and Gennette will continue to work very closely together on improving current business trends and setting the stage for changes that will be announced as decisions are finalized." Mr Lundgren has served as the company's chief executive since 2003. He oversaw the purchase of May Department Stores Company, which doubled the size of Macy's footprint. He also successful navigated Macy's through a legal battle with the Martha Stewart brand and department store competitor JC Penny. Macy's operates approximately 870 stores across the US, including Macy's, Bloomingdale's, Bloomingdale's Outlet, Macy's Backstage and Bluemercury.