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May Co. chairman retires
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March 1, 2001: 2:30 p.m. ET
Department store operator announces new chairman, boardroom promotions
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NEW YORK (CNNfn) - May Department Stores Co., owner of Lord & Taylor, appointed CEO Eugene S. Kahn to the additional post of chairman of the board Thursday, succeeding retiring Chairman Jerome T. Loeb.
Loeb's retirement takes effect April 30.
"I take this step with mixed emotions, having totally enjoyed my years at May and working relationships with so many dedicated and accomplished people," the 60-year-old Loeb said in a statement. "At the same time, I am confident that this has been and will continue to be a smooth transition."
 Khan, 50, a retailing veteran, joined May's G. Fox divisions as president and CEO in 1990. He was later named CEO of Filene's and then promoted to vice chairman of May, and elected to the board of directors in 1996. He was promoted to May CEO in 1998.
"This culminates a long-term management succession plan," Khan said. "We are very proud of the great depth of management that May has, allowing us to promote experienced and talented executives from within to these key positions."
The St. Louis-based retailer also appointed John L. Dunham, vice chairman and chief financial officer, as the company's president. He succeeds Kahn in that post.
Thomas D. Fingleton, executive vice president, will take over as CFO.
Investors should not read too much into the changes, cautioned Kurt Barnard, president of Barnard's Retail Trend Report in Upper Montclair, N.J.
He said the succession is a natural one and not based on company performance or other factors.
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"He (Loeb) has been in charge for a long time. He is basically ready to step down," Barnard said.
May has suffered along with most retailers in recent quarters as a slowing economy and high energy prices helped erode consumer confidence, prompting cutbacks in spending.
Department stores have been particularly hard hit as successful discount chains and specialty retailers such as Kohl's Corp. (KSS: Research, Estimates) and Target Corp. (TGT: Research, Estimates) have siphoned business and performed well even in difficult times.
"Consumers have turned cautious. They have stopped buying things frivolously," Barnard said. "Consumers do spend money today, but they will buy only what they need, will insist on good quality and fashion. But they will buy cautiously, and not buy extravagantly."
May Department Stores (MAY: Research, Estimates) stock lost 78 cents to $38.81 in late morning trading. 
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