J.C. Penney’s newly tapped CEO has a big challenge ahead of him: The troubled chain is showing signs of improvement after racking up billions in losses, but still hasn’t figured out how to get shoppers back into its stores.
Penney said Monday that Marvin Ellison, a 30-year retail veteran and executive vice president of stores at Home Depot, will become its CEO next August. Ellison, 49, will be the first black CEO in the company’s 112-year history.
Ellison succeeds Mike Ullman, the former CEO who came out of retirement last year to take the helm again. His job was to stabilize the business following the ouster of Ron Johnson, a former Apple executive who tried to revive the beleaguered chain by getting rid of sales and some basic merchandise. That led to losses — a total of $3.16 billion in 11 of the last 12 quarters — that have slowed under Ullman’s leadership.
Ellison, who also will join Penney’s board, takes on the role of president in November before becoming CEO next year. At that time, Ullman will become executive chairman of the board.
Analysts say it’s rare for a management transition period to last nearly a year, but Walter Loeb, a New York-based retail consultant, said the time is needed. “I think (Ellison) is an excellent leader … but he needs time to learn the fashion business,” Loeb said.
