After 13 years as CEO of Macy's, Terry Lundgren announced on Thursday his plans to step down in 2017. Lundgren has served as CEO since 2003 and his successor Jeff Gennette will take on the dual role of CEO and President, his current title since March 2014. Starting next year, Lundgren will continue as Executive Chairman at Macy's and work closely with Gennette on improving its business model to keep up with the current state of retail as it's evident that department stores are struggling to keep up. (In May, Macy's reported a drop in Q1 sales by 7.4 percent.)
"While our company is larger, stronger and more resourceful than we were 13 years ago, now is the time to reset our business model to thrive in a future that is being driven by rapid evolution in consumer preferences and shopping habits," said Lundgren in an official statement.
For the remainder of the year, Gennette will take on additional management duties, as well as oversee the organization of Macy's stores. In addition, and effective immediately, he joins the Macy’s, Inc. board of directors, now totaling 14 members.
Lundgren and Gennette have also started on a "going-forward strategy" to implement changes that will be announced once they're finalized. Previously, Macy's has tapped into Korean beauty, Bluemercury, Etsy and Iris Apfel (in emoji form, too) to attract a new set of customers, such as beauty-conscious shoppers and millennials.