JC Penney CEO Ellison steps down in move to Lowe's

JC Penney's stock drops 7.6% as CEO quits to lead Lowe's

JC Penney's stock drops 7.6% as CEO quits to lead Lowe's

Ellison, whose Twitter handle is "Committed to my Faith, Family and Company", is jumping ship to replace Robert A. Niblock, who announced his intention to retire earlier this year after 13 years as CEO.

At J.C. Penney, Ellison was tasked with stemming a two-year sales decline as the company struggles to stay relevant in a brutal US retail landscape, where customers are increasingly turning to online shopping.

JCPenney shares fell 7% after the abrupt resignation of the company's CEO Marvin Ellison left for Lowe's. "I want to personally thank the entire J.C. Penney team for their loyalty and hard work over the years". He also has at least 12 years of home improvement experience. Besides his recent turnaround efforts at Penney, which included stepping up offerings in the home and appliance department, he spent 12 years at the Home Depot in senior positions, including running USA stores and focusing on its Pro initiatives.

The departure means that a new CEO may have to set a new course for J.C. Penney to survive. At Lowe's, he will be in charge of a company that had about five times as much revenue at $68 billion, producing a profit of $3.4 billion.

Penney's shock at Ellison's exit may have been self-inflicted, as it did not have an employment agreement with the CEO, the company confirmed.

"In our view, (Lowe's) is in need of a fresh set to eyes to help to improve operational controls at the chain and potentially close a still significant profitability gap with HD", the note read.

Ellison is chairman and CEO of CPenney, which he has attempted to steer through a turnaround.

Ellison, who had previously served in various executive roles at Home Depot, was brought in after the disastrous tenure of former Apple executive Ron Johnson. However, he is stepping down from the Chairman role immediately.

Last week, the retailer cut its outlook for the year.

Ellison is now a director of FedEx Corporation, the Retail Industry Leaders Association (RILA) and the National Retail Federation. And at day's close, J.C. Penney shares were down 6 percent while Lowe's shares were down 1.88 percent.

Lowe's reports first-quarter results on Wednesday "and obviously wanted to talk about hiring Marvin", Grom told The Post.

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