Macy’s executive chairman Terry Lundgren is set to retire from the company’s board on Jan. 31.
Lundgren will be replaced by Jeff Gennette—who also succeeded him as CEO—on that date.
Lundgren, who stepped down as CEO in March said in a statement that he was proud of the company’s accomplishments during his 14 years at the helm. “I am confident that the company has the strategies, resources, talent and leadership to capitalize on the fundamental shifts in consumer shopping patterns we have all experienced,” Lundgren said. He also gave a vote of confidence to Gennette. “I continue to be impressed with Jeff’s leadership, his decisiveness and his engagement with all levels of our outstanding organization.”
Prior to becoming CEO in 2003, Lundgren served as president and CMO. Lundgren was also chairman and CEO of Federated Merchandising Group. Ultimately, he was responsible for creating Macy’s Inc. by spearheading the merger of Federated and May Department Stores in 2005, bringing a slew of department store banners under the Macy’s nameplate. At one time, the retail group had more than 800 locations.
Of Lundgren, Gennette said, “Terry has been an outstanding leader for Macy’s and an inspiration for the industry. I thank him for the guidance he has given me during this transition period and wish him all the best in his well-deserved retirement from Macy’s, Inc.”
In addition to thanking Lundgren for his contributions, Macy’s lead independent director Marna Whittington said, “Jeff has the full confidence of the board and we look forward to him executing on the company’s strategic plan intended to return the company to growth.”
When Gennette took over as CEO in March, he stepped into arguably the most challenging time for the company given the change in consumer buying habits, the emergence of e-commerce and the need for true omnichannel retail—all of which threaten Macy’s top and bottom lines.
In June, he rolled out Macy’s North Star Strategy, a five-point plan to revamp the retailer’s assortments, marketing, efficiency, approach to experiences and overarching philosophy. Moving forward Macy’s is committed to reducing SG&A expenses by $400 million, looking for ways to monetize its real estate, increasing its private and exclusive assortment from 29 to 40 percent, boosting beauty through its Bluemercury channel and building brand loyalty through its new Star Rewards program.