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Macy’s CEO Terry Lundgren will hand the reins over to the firm president Jeff Gennette (pictured) at the start of next year. It’s an unexpected move, and real estate is behind it.
Gennette will inherit the task of turning around the nation’s largest department store, and Lundgren will remain on board as executive chairman, Bloomberg reports. Investors are happy with the switch—Macy’s shares flew up 4.9% after news of the appointment broke.
The CEO swap comes at an unexpected time, and analysts speculate the move was pushed through by activist investors who want Macy’s to do more to monetize its extensive real estate holdings. That may mean selling off some of the firm’s flagship stores, especially after the company rejected the idea of forming a REIT last year. [Bloomberg]
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