JC Penney Chairman and CEO Myron Ullman
speaks during the meeting of the Wall Street Journal CEO Council in
Washington November 16, 2010.
Credit: Reuters/Jonathan Ernst
The department store operator's shares rose 3.2 percent to $7.35 in early trading on the New York Stock Exchange on Monday.
Ellison, 49, comes to the struggling retailer from Home Depot Inc (HD.N), where he has been heading its U.S. stores business since August 2008.
Prior to joining the home improvement chain in 2002, he held a variety of role at Target Corp (TGT.N) over 15 years.
"... We can tell you that Ellison is very strong operationally," Belus Capital Advisors analyst Brian Sozzi wrote in a note.
"With operational execution critical at
this point in J.C. Penney's lifespan, Ellison's operational background is needed."
J.C. Penney said Ellison would join on Nov. 1 as president and CEO-designee. Ullman will remain with the company as executive chairman for one year after Ellison takes over as CEO on Aug. 1.
Ullman, who was CEO from 2004 to 2011, was brought back to J.C. Penny in April last year to try to stem a slide in sales that was blamed on former CEO Ron Johnson's attempts to take the retailer upmarket.
The 112-year-old retailer, which cut its same-store sales forecast last week, has been trying to win back shoppers by revamping its household goods section and bringing back many of the no-frills clothes ditched under Johnson.
The company said in August that Ullman was recovering from a surgery related to a medical condition he had for more than 20 years.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Savio D'Souza)
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