Terry Lundren, Jeff Gennette - Photos: Macy's

Macy’s, Inc. chief executive officer Terry Lundgren has seen his reputation as a retail visionary scrutinized in recent years as the retailer has struggled to connect with younger consumers and drive the type of sales and earnings numbers that were once a foregone conclusion. With the news that Mr. Lundgren will step down as CEO of Macy’s next year, the question on everyone’s mind is what will happen to Macy’s without him?

Macy’s has provided some answers. Firstly, the company has an internal replacement ready to move into the CEO role. Jeff Gennette, president of Macy’s, Inc. since 2014, will succeed Mr. Lundgren as CEO in the first quarter of 2017. In the interim, he will assume additional responsibilities currently handled by Mr. Lundgren. Mr. Gennette will also join Macy’s board bringing the total number to 14. Mr. Lundgren, who became CEO of Macy’s in 2003, will remain on as executive chairman. He was first named chairman in 2004.

“Now is the time to reset our business model to thrive in a future that is being driven by rapid evolution in consumer preferences and shopping habits,” said Mr. Lundgren in a statement. “Our company must and will change in response to the profound secular forces that are driving consumer spending.”

Mr. Gennette said Macy’s would need to be “laser-focused” on the needs of its customers and reaffirmed the company’s goal of becoming “the premier omnichannel retailer” in the business.

“There is no doubt that Macy’s, Inc. will need to be a significantly different retailer in the future in the way we operate and approach the marketplace,” said Mr. Gennette. “But we also must continue to tackle our immediate priorities with vigor and discipline.”

As to how Macy’s will change under Mr. Gennette’s leadership, an article on the Fortune site posits that the retailer may include more store-within-a-store concepts such as the ones currently in place with Best Buy, Finish Line, Lids and Sunglass Hut. Mr. Gennette pointed to the association with Finish Line as a success, a category of products in which Macy’s hadn’t previously had a “credible” presence.

DISCUSSION QUESTIONS: Do you have any advice for Jeff Gennette as he prepares to become the next CEO of Macy’s, Inc.? What do you think will be Terry Lundgren’s legacy once all is said and done?