Rodgers first made the announcement at the annual shareholder meeting, when he stated that that he wanted to retire from his role, having served on the board of directors since 2001.
Lundgren is currently president and chief executive officer of Macy’s, who will serve on two committees – that for Governance & Public Responsibility, together with the Innovation and Technology Committee for the P&G board.
Lundgren’s appointment comes as P&G continues to restructure its management and executive board in the light of falling revenues and shrinking profits during the course of the past two years.
Lundgren's specializes in merchandizing and branding
His career has seen him credited as in innovator in merchandizing and branding, while he has also overseen the merger of Federated Department Stores and May Department Stores in 2005 to create one of the largest retailers in the world.
At the helm of Macy’s Lundgren is credited with holding a stronger position than many of its competitors during the current economic downturn thanks to his focus on localization in stores – which involves providing goods and services that are tailored to local customers.
Speaking of the appointment, P&G CEO Bob McDonald said: “He brings extensive leadership, strategy and risk management experience, as well as exceptional knowledge of the consumer industry and dynamic marketing practices.”
“His hands-on experience in organizational optimization will be invaluable as we continue to drive our productivity programs forward.”
Bob McDonald remains at the helm
Last year, as revenues and share dividends continue to slide, a growing number of industry observers were speculating over how long Bob McDonald would stay at the helm.
The speculation grew when, in July of 2012, activist investor Bill Ackman purchased $1.8bn in P&G stock, a stake that is estimated to be less than 1 percent of the total business.
However, the P&G executive board has continued to back McDonald’s restructuring plan, which focuses on ramping up innovation in an effort to maintain the company’s competitive edge.