Penney appoints Ellison to top jobs
Beleaguered department store chain taps Home Depot exec
NEW YORK – J.C. Penney’s newly tapped CEO has a big challenge ahead of him: The beleaguered chain has shown signs of improvement after racking up billions in losses, but it still hasn’t figured out how to lure shoppers back into its department stores.
Penney said Monday that Marvin Ellison, a 30-year retail veteran and executive vice president of stores at Home Depot Inc., will become CEO next August.
Ellison succeeds Mike Ullman, a former CEO who came out of retirement to take the top job at Penney’s last year. His mission was to stabilize the business following the ouster of Ron Johnson, a former Apple executive who unsuccessfully tried to revive the 112-year-old chain by getting rid of sales and some popular brands. That led to billions in profit and sales losses.
The losses have slowed under Ullman’s leadership, but analysts say Ellison’s challenge will be to fix the fundamental problems that caused Penney to lose customers in the first place.
They say the retailer doesn’t carry the latest trendy looks that rivals like Macy’s and H&M do. Its stores are drab and unexciting. And its web site doesn’t offer the selection and services that shoppers like.
“While bringing in a credible new CEO has some benefits, J.C. Penney’s customers are leaving the store,” said Michael Binetti, an analyst at UBS in a note to clients Monday.
Penney is looking to Ellison, 49, to help right the ship but it won’t be right away. Ellison, who also will join Penney’s board, takes on the role of president in November before taking the CEO title next year. At that time, Ullman will become executive chairman of the board at that time, serving for a year.