Ever since Macy’s CEO Jeff Gennette announced his retirement, the question of retirement age has been raised more frequently. Jeff is 63 and, admittedly, a young 63. Like others at the helm of major companies, he went through some horrific times during the pandemic caused by Covid 19.
We can list some other CEO’s who are in the same age range or older and past the traditional retirement age.
1. Home Depot Edward Decker 60
2. Apple
AAPL
3. TJX Ernie Herman 62
4. Target
TGT
5. Kohl’s Tom Kingsbury 70
6. Costco W. Craig Jelinek 71
7. Dillard’s William T. Dillard II 78
Several other slightly younger CEOs are leading major corporations and looked upon to bring innovation and fresh ideas to their businesses.
1. Best Buy Corrie Barry age 44
2. Gap Richard Dickson 52
3. Dick’s Sporting Goods Lauren Hobart 55
4. Andy Jassy Amazon 55
5. Walmart Doug McMillon 57
6. CVS Karen S. Lynch 59
The average age of the Fortune 500 CEO is 57.7 years old. An average like that means some are much older as my survey showed. Brian Cornell was extended 3 years beyond the retirement age of 65. That is time enough to train a younger tiger to take his place. Of note, Target stores have changed a lot under Cornell’s guidance.
Many of the leaders came up through the ranks. They learned the business through hands-on experiences and then executed their own ideas. Their seasoned approach to running their respective business very often reflects their own experience and knowledge.
I recently read an article by Martin Reeves, chairman of Boston Consulting Group’s BCG Henderson Institute. He co-authored an article in the Harvard Review where he points out that CEOs may be “reluctant to challenge the mental models or organizational structures that have underpinned their success. Conversely, younger professionals may be more open to pursuing new paths leading to long-term payoffs, given their longer career horizons. Yet, they are usually not in the position to effect change within their organizations.”
If you accept that theory, it is a terrible indictment of the status quo that exists in many stores today. It suggests that management that has successfully navigated the corporate ladder to achieve leadership positions may want to keep everything as it is. They do not want to ruffle still (dare I say ‘comfortable?) waters. Of note, Macy’s recent effort to break away from old systems is to be congratulated. But it is true in too many cases; old systems stay in place too long. Until recently, Macy’s system in furniture delivery was older than 30 years. Why? It wasn’t broken…“It works”.
Experience is valuable but it’s just as important to have passion, energy and fresh thinking mixed in. One looks for new ideas that will resonate with younger shoppers. A younger CEO might bring new life and excitement to stores that are just barely beating last year’s figures. The idea of being passionate about new merchandise, about fashion in particular, helps the sale of an idea. I remember a store in Chicago that made the conscious decision to display the new fashion items on the main floor with signs that screamed: “Fashion Is” and the mannequins were all dressed in the same fashion color. In another example, Bloomingdale’s revamped the shoe department in its 59th St flagship store.
Once the senior executive of a company is younger, other executives that are chosen may also be somewhat younger as management seeks leaders less invested in retaining what’s worked in the past. A fresh mix of leaders can bring new ideas that intrigue and attract younger customers that every business wants to attract. My list includes several younger people at the helm of their company. They are doing well and have created new ways to distribute merchandise and deliver orders, and new ways to compensate loyal staff. We have seen miniaturization of stores (a great idea), and specialization of merchandise.
Old CEOs are trustworthy and will deliver the best sales their stores can offer. But their efforts are not likely to be innovative or exciting to a young customer – ever.
POSTSCRIPT: The writer of this blog (me) is 98 years old. I know many more people reach this age now. (Sure, medicine helps.) However, over my decades-long involvement with the retail industry, I have had the chance to witness great change– both successes and failures. All of that now gives me a great perspective and a vision of what is needed at this time. I do not want department stores to die, and I see new specialty stores testing the waters to provide other fresh options as well. I look to leaders like Tony Spring, Corie Barry, Richard Dickson, Andy Jassy, and Lauren Hobart to show us the way to breakthrough innovation. In my vision, there will be teams who support these men and women and embrace innovation. The stores will look different, the sales people will smile, and there will be offerings that are now alien to the stores. It will make retailing more fun and people will meet at Macy’s, Dillard’s or Walmart again.
Read the full article here