After a whole year of search for the next CEO of the company, J C Penney Company Inc (NYSE:JCP) has named the U.S. business head of The Home Depot, Inc. (NYSE:HD) as its new CEO. The shares of the retailer are having a positive investor sentiment with a 1% increase in its share price at the time of reporting.
Marvin Ellison, The Home Depot, Inc. (NYSE:HD) U.S. business head, would take the place of the interim CEO of J C Penny, Myron Ullman, in August 2015. Ellison is likely to join the company on November 1 as CEO-designee and president of the company and the current CEO is likely to stay in place for another year. Experts are expecting that Marvin Ellison will increase the operational efficiency of the company.
Mr. Ullman said, “It is a great pleasure to welcome Marvin Ellison to JCPenney. Over the course of his career, he has proven his ability to produce results by improving operations, building customer loyalty, and motivating his teams. His experience and leadership are exactly what we need to accelerate the progress we have made over the last 18 months.”
Brian Sozzi, Belus Capital Advisors, said, “We can tell you that Ellison is very strong operationally. With operational execution critical at this point in J.C. Penney’s lifespan, Ellison’s operational background is needed.” As of now, J C Penney Company Inc (NYSE:JCP) is struggling to lure back its shoppers and the company is going reintroduce many of its home section products that were ditched by the previous CEO, Ron Johnson.
Mr. Ellison said, “…This Company has been an important part of the American retail landscape for over one hundred years. Today, it is moving in the right direction and there is an extraordinary passion to win at every level of the organization. As President and, ultimately, CEO, I will be focused on positioning the Company to compete in a rapidly changing retail environment for the benefit of our customers, shareholders, suppliers and associates.”
With his considerable operational experience and successful career, J C Penny would only hope that the new CEO could turn around its fortunes and help the ailing retailer compete against its rivals.
This article has been written by Prakash Pandey.