Penney CEO Marvin Ellison to Take on Added Role of Chairman

J.C. Penney Co. said Chief Executive Marvin Ellison will take on the additional role of chairman, succeeding long-time executive Myron "Mike" Ullman who will retire.

The moves are in line with the transition plan the department-store operator unveiled in 2014 when it named Mr. Ellison, then of Home Depot Inc., as its incoming CEO. The appointment is effective Aug. 1.

Mr. Ullman first left Penney in early 2011 when the company brought on Apple Inc. retail chief Ron Johnson as chief executive. But he returned to the retailer about two years later when Penney pushed out Mr. Johnson after a disastrous drop in sales.

The retailer took a more cautious approach to appointing Mr. Ullman's second successor. Mr. Ellison, who is 51 years old, joined the company in November 2014 to work with Mr. Ullman, but he didn't assume the CEO role until the following August.

In a prepared statement, Mr. Ullman said Mr. Ellison has "proven himself to be the right leader for our company" over the past year and a half and added that Penney has made progress in implementing the changes needed to rebuild into a modern retailer with a sustainable business.

Mr. Ellison was previously head of stores for Home Depot and spent 15 years at Target Corp.

Penney, along with other department stores, has struggled as shoppers are increasingly turning to Amazon.com Inc. for their clothing and apparel needs. The company said its overreliance on apparel weighed on its most recent quarterly results, after sluggish clothing sales dragged down overall revenue, a problem plaguing other department store chains.

Write to Lauren Pollock at [e-mail]

(END) Dow Jones Newswires

July 21, 2016 17:45 ET (21:45 GMT)

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