Home improvement retailer Lowe’s on Tuesday named the CEO of department-store chain J.C. Penney as its new boss.
Marvin R. Ellison has resigned as CEO of J.C. Penney to become the new CEO of Lowe’s.
The former Home Depot U.S. store executive succeeds Robert Niblock, who announced his retirement in March after 13 years at the helm of Lowe’s.
Ellison, who has been guiding J.C. Penney through a turbulent period, will now help Lowe’s try to catch up with archrival Home Depot.
“Attracting Marvin is a great win for the entire Lowe’s team,” Lowe’s lead director Marshall O. Larsen said in a statement. “Marvin is an experienced retail CEO with extensive expertise in a complex omni-channel consumer-facing company. He also brings significant experience in the home improvement industry, with a proven track record of global operational excellence and driving results from both DIY and Pro customers.”
The news dealt an immediate blow to J.C. Penney’s own turnaround hopes. The company’s stock was down by more than 4%.
“The turnaround program that Ellison put in place at JCP has partly delivered but is still far from complete,” wrote Neil Saunders, managing director of GlobalData Retail. “There is now a question mark over how this plan will proceed and, indeed, whether JCP will remain on the same trajectory.”
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SOURCE: USA Today, Nathan Bomey