CINCINNATI -- The new CEO of Macy's will take the reins at the end of March, the company announced in an earnings report Tuesday.
Jeff Gennette, president of Macy's Inc., will assume the role of company CEO on March 23, the report said. Longtime CEO Terry Lundgren will step aside but will remain executive chairman of the company.
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This ends a 14-year run for Lundgren, who led Macy's through explosive growth after the recession but is now coping with five-quarter sales slump that has driven down the company's stock price and agitated activist investors.
Lundgren described Gennette as "an extraordinary leader who has distinguished himself as a skilled merchant and retail operator."
As sales slump, the Wall Street Journal reported that Hudson's Bay -- the Toronto and New York-based parent company of Lord & Taylor and Saks Fifth Avenue -- might be interested in buying Macy's.
A source familiar with the matter confirmed to CNNMoney that an offer has been made but that discussions are still in preliminary stages.
Last month, Macy's announced plans to shut down 68 stores and cut more than 10,000 jobs following disappointing sales during the holidays.
Macy's and other traditional department stores like Kohl's, Nordstrom, JCPenney and Sears have all found it difficult to compete with online retail giant Amazon, mass merchandisers like Walmart and Target and upstart fashion chains H&M and Zara.