Retail giant J.C. Penney announced Home Depot executive Marvin Ellison as Chief Executive Officer on Monday, Oct.13.
The retailer's shares went down 0.4 percent and close at $7.09. Furthermore, UBS downgraded the stock from neutral to sell, saying that J.C. Penney failed to offer sufficient new exciting merchandise during a recent analyst day held in New York City.
Ellison replaces interim CEO Mike Ullman who pledged to support and rebuild the company after a tragic mishap following former CEO Ron Johnson's removal from the position back in April 2013.
Johnson reportedly did not succeed in restructuring the company, his move of removing coupons back in 2013 pushed back customers that led to decline in sales.
However, Ullman's management posed positive effects on the retailer's systems. His leadership led to J.C. Penney rebuilding its image and putting out efforts to be more updated to serve Millenial shoppers.
J.C Penney Chairman Thomas Engibous attested to the skill of the upcoming CEO.
"He brings to the role, among other assets, an extensive knowledge of store operations and supply chain management as well as a demonstrated ability to successfully run large retail organizations," Engibous proudly stated, adding that Ellison is "the right CEO to lead the next stage of J.C. Penney's growth."
Meanwhile, Ellison currently works as Home Depot's Executive Vice President of stores, will shift to President and CEO-deisgnee of J.C. Penney starting Nov. 1, and will officially become a full-fledge CEO August next year.
Ellison also served Target for 15 years. His well-seasoned management skills will be beneficial for J.C. Penney, which has suffered from inconsistent customer experiences between stores and an absence of management discipline, according to Jason Hanold, CEO of executive search firm Hanold Associates.
"He's coming from an organization that simply has world class management," he says. "If a disciplined leader is instilling management discipline through an organization, that can often translate into better customer experience," Hanold explained.
