J.C. Penney's board of directors has been dealing with criticism over the slow pace of its search to find a replacement for interim CEO Mike Ullman, who has been on the job, at this point, for about 18 months. As of yesterday, the department store can say with certainty that its new permanent CEO will be on the job as of Aug. 1, 2015. Aug. 1, 2015?
Penney announced the appointment of Marvin Ellison, a retail executive who helped get Home Depot turned around over the past 12 years, as its new president and CEO-designee as of Nov. 1. Before joining Home Depot, Mr. Ellison served in a variety of roles at Target for 15 years.
At Home Depot, Mr. Ellison, currently executive vice president of U.S. stores, was credited with improving customer experience by making the chain's big boxes easier to shop. He also found ways to free up associates to assist customers in stores.
"He has proven his ability to produce results by improving operations, building customer loyalty, and motivating his teams," Mr. Ullman said of his eventual replacement. "His experience and leadership are exactly what we need to accelerate the progress we have made over the last 18 months. I look forward to working closely with him and the rest of our outstanding team in the coming months to ensure a smooth transition."
Under Mr.Ullman, Penney has been able to staunch the bleeding from Ron Johnson's ill-fated plan to turn the department store chain around. While business has improved, critics say much more change is needed in light of the company's current cost structure. The company's leadership has also been criticized for not being more aggressive in closing underperforming locations.
"There is an extraordinary passion to win at every level of the organization. ... I am confident that we have the customer proposition, the brand, and the talent to make J.C. Penney successful over the long term," Mr. Ellison said in a statement.
An interesting side story is that Penney also eased Mr. Johnson into his CEO role when he joined the company from the Apple Store in 2011. Mr. Johnson was focused on marketing and merchandising while Mr. Ullman oversaw accounting, finance and other duties during the transition period.
"It's very important we give Marvin as much time as he needs," Mr Ullman was quoted by The Dallas Morning News. "I believe he will be a much better CEO than I am."
- JCPenney Names Marvin Ellison President and CEO-Designee - J.C. Penney Company, Inc.
- J.C. Penney Names Marvin Ellison as CEO-Designee - Women's Wear Daily (sub. required)
- J.C. Penney Seeks Home Depot Treatment Under Ellison - Bloomberg News
- J.C. Penney picks Home Depot executive as its next CEO - The Dallas Morning News
- What's taking J.C. Penney so long to find a new CEO? - RetailWire
- Penney Offers Training Program for New CEO - RetailWire