Lowe & # 39; s Companies is poaching the CEO of JC Penney Company, Marvin R. Ellison.
The home improvement retailer announced on Tuesday that it will name Ellison's president and CEO, effective as of July 2. Ellison will replace Robert A. Niblock, who previously announced his intention to retire.
Ellison is president and CEO of JC Penney, which he has tried to control during a radical change. Before working for J.C. Penney, Ellison worked for more than 12 years at Home Depot, a rival of Lowe & s, and served as executive vice president of US stores. UU
The actions of J.C. Penney fell 9 percent, while Lowe & # 39; s shares rose 2 percent in pre-market trading.
A spokesperson for J.C. Penney told CNBC that he was just informed by Ellison a couple of days ago about the move, and that he did not know when it was the last time he reported earnings. Currently has four executives who deal with everyday decisions. You are looking for internal and external candidates.
Highly leveraged department stores have struggled to compete within the rapidly evolving retail landscape, as consumers change their purchases online and away from the mall, where many J.C. stores are located. Penney. Last year, closed more than 100 stores.
Similarly, its affordable rival, Kohl & # 39; s, has benefited from the presence of a store away from shopping centers. They also take bets such as forging alliances with Amazon and Under Armor.
J.C. Penney has also been squeezed by discount stores Walmart and Target, as they have improved their clothing selections. Target, meanwhile, has focused on developing its private label clothing brands.
Under Ellison, the J.C. Penney has made a number of efforts to help manage a radical change, which includes a focus on beauty and appliances. In March, it eliminated 230 positions and announced the departure of executive vice president of the omni-channel business of Penney, Mike Amend,
The Lowe & # 39; s board also named Richard W. Dreiling, director of Lowe & # 39; s since 2012 , president, effective July 2. .