Terry J. Lundgren, 55, doesn’t have the weight of the world on his precisely tailored shoulders, but he does, for all intents and purposes, carry with him the future of the department store industry. After orchestrating Federated Department Stores’ $11 billion acquisition of May Department Stores, Lundgren is now dealing with the challenges that come with managing a single department store giant.
For Lundgren, combining forces under one banner wasn’t about being bigger. It was about being more competitive in a tough marketplace. He believes that with its greatly expanded portfolio, Macy’s now has the clout to secure better deals, including exclusive arrangements with designers and manufacturers. He scored a big coup in October when Macy’s struck an exclusive deal with designer Tommy Hilfiger, who agreed to sell his biggest clothing lines exclusively at Macy’s stores.
Long known for his fashion savvy, Lundgren, in recent years, has proven himself to be a tough negotiator and determined businessmen. He also has a knack for inspiring confidence. Since Lundgren became CEO in 2003, Macy’s shares have appreciated about 110%.