J.C. Penney CEO Marvin Ellison resigns to become CEO of Lowe's

Nathan Bomey | USA TODAY

Show Caption Hide Caption The lines at Lowe's are too long, Jim Cramer explains As an avid gardener, TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer said the lines at Lowe's are too long and he tends to like shopping at Home Depot better. Video provided by TheStreet

Home improvement retailer Lowe's on Tuesday named the CEO of department-store chain J.C. Penney as its new boss.

Marvin Ellison has resigned as CEO of J.C. Penney to become the new CEO of Lowe's.

The former Home Depot U.S. store executive succeeds Robert Niblock, who announced his retirement in March after 13 years at the helm of Lowe's.

Ellison, who has been guiding J.C. Penney through a turbulent period, will now help Lowe's try to catch up with archrival Home Depot.

“Attracting Marvin is a great win for the entire Lowe’s team," Lowe's lead director Marshall Larsen said in a statement. "Marvin is an experienced retail CEO with extensive expertise in a complex omni-channel consumer-facing company. He also brings significant experience in the home improvement industry, with a proven track record of global operational excellence and driving results from both DIY and pro customers."

The news dealt an immediate blow to J.C. Penney's own turnaround hopes. The company's stock fell 6.8% in pre-market trading to $2.33.

"The turnaround program that Ellison put in place at JCP has partly delivered but is still far from complete," wrote Neil Saunders, managing director of GlobalData Retail. "There is now a question mark over how this plan will proceed and, indeed, whether JCP will remain on the same trajectory."

Lowe's investors greeted the news happily. Lowe's shares were up 1.8% to $89 in pre-market trading.

J.C. Penney appointed a team of several leaders to head a new "office of the CEO" while the company searches for a permanent replacement.

They are: lead independent director Ronald Tysoe, who will become chairman, as well as CFO Jeff Davis, Chief Customer Officer Joe McFarland, Chief Information Officer and Chief Digital Officer Therace Risch and Executive Vice President of Supply Chain Mike Robbins.

At J.C. Penney, Ellison has closed stores, enhanced the company's in-store partnership with beauty brand Sephora and started selling toys and appliances.

But sales have suffered amid declining mall traffic and falling consumer interest in department stores.

Still, Ellison is largely credited with helping J.C. Penney get back to the basics after a rough CEO stint by former Apple executive Ron Johnson.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.