>> Terry Lundgren, the leader of Macy's for nearly 14 years, who led the company through one of its biggest expansions, led the company through the dark days of the financial crisis, and responsible for doubling sales, stepping down next year. I'm Reuters reporter Conway Gittens outside of Macy's flagship store in Herald Square.
Lundgren announcing on Thursday that he is stepping down from day-to-day operations after announcing the worst quarterly sales since the Great Recession. Now Lundgren is still considered one of the best CEOs in the retail space. He was earlier than his peers in putting together the omni-channel experience, that means consumers could shop online, shop in the store, and shop using their mobile devices, and that gave Macy's a head start.
But, since then, the industry has changed, and Macy's, like many other retailers, is slow to adapting to that change. Millennials are shunning the malls altogether, preferring to shop online, and when they do shop in the store, they're going to the fast casual chains like H&M and Zara. Older shoppers are going to discount chains like TJ Maxx, and that is eating into Macy's share.
Macy's has responded by announcing plans to become smaller, selling off stores and selling off some of its lucrative real estate assets, but that has not stopped the stock from falling 50% over the past year. Lundgren is passing the baton to current president Jeff Gennette, who will be responsible for battling against the idea that department stores and malls as we know it are becoming extinct.