--Mr. Jones fills head merchandising position, which had been
vacant since May
--Lowe's has been comprehensively reviewing merchandise over
last year
--Lowe's is hopeful Mr. Jones may someday be next CEO, says
person close to the company
(Updates with new hire's CEO prospects, executive interview,
further details and context throughout.)
By Joan E. Solsman and Joann S. Lublin
Lowe's Cos. (LOW) named an executive known for his sales,
marketing and international expertise as its chief merchandising
officer, a position long left vacant even as the chain
comprehensively reviewed what it stocks on shelves.
The home-improvement retailer selected Michael A. Jones as its
head merchant partly in the hope of grooming him as a possible
chief executive, according to a person close to the company.
Mr. Jones's resume is heavy on sales and international
experience. He most recently was an executive at Husqvarna AB
(HSQVY), a outdoor-power-equipment company based in Sweden, as
president for North and Latin America. Before that, Jones spent 15
years with General Electric Co. (GE), starting in appliance
contract sales and moving to positions as chief commercial officer
of European consumer and industrial operations and a general
manager of cooking products.
Mr. Jones will be responsible for merchandise offerings and
global sourcing at Lowe's, which operates about 1,750 stores in the
U.S., Canada and Mexico. He also will work closely with the leaders
of customer experience design, marketing, operations and logistics.
The position has been open since May.
But the incoming Lowe's executive won't be hurt by his lack of
merchandising experience because the retail chain has "a very
robust merchandising organization," the person close to the company
said Thursday.
Mr. Jones "has much broader experience" in sales and marketing,
and also offered international experience, this person explained.
That is the kind of pedigree Lowe's directors sought in a new
merchandising chief, and they are "hopeful" he might someday be the
company's next CEO, this person added.
In an interview, Lowe's Chief Customer Officer Greg Bridgeford
said there are no plans for Chief Executive Robert Niblock to
retire but that Lowe's always wishes for its executives to
advance.
Mr. Jones will join a five-person team Mr. Bridgeford oversees.
"I hope that each one of them will be considered for higher
positions," Mr. Bridgeford said. "That is our standard." He also
said Lowe's was attracted to Mr. Jones's 20 years in the industry
and his understanding of how to build up profit, value and
margin.
The appointment comes at time when Lowe's has already finished
the heavy lifting of newly comprehensive product review round, but
its competitive and international prospects remain in flux.
Over the last year, Lowe's has been comprehensively reviewing
its product lines and resetting areas of its store as it refreshes
what it sells to better suit customers and steer toward everyday
low prices rather than sales. The first round of its reviews, which
encompasses the lion's share of its categories, is nearly
complete.
However, Lowe's sales have long underperformed its larger rival
Home Depot Inc. (HD). Home Depot benefited from starting
transformational changes before the housing downturn, insulating it
during the recession and accelerating its performance as demand has
improved. To catch up, Lowe's has closed stores, shaken up its
management structure and used the product review process to improve
assortment and reduce unit costs.
In addition, the landscape for some of its international
aspirations has shifted. Last year, Lowe's withdrew a takeover
proposal for Canada's biggest do-it-yourself chain Rona Inc.
(RON.T) after failing to negotiate a friendly deal with the board,
but since then its longtime chief has stepped down and its biggest
shareholders have advocated for an overhaul of the board.
Lowe's shares were up 1.2% at $38.34 in recent trade. The stock
has leapt 43% in the last year as investors flocked to
beneficiaries of the improving housing market.
-Saabira Chaudhuri contributed to this report.
Write to Joan E. Solsman and Joann S. Lublin at
joan.solsman@dowjones.com and joann.lublin@wsj.com
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