May stores chief quits

NEW YORK -- May Department Stores Co. yesterday said Gene Kahn, its chairman and chief executive, has resigned, a step analysts say would help bring in new blood to revive the retailer's sales.

The St. Louis company said it would immediately begin searching for a successor, within and outside its ranks, and shares jumped 4 percent on the news.

Its brief statement did not say why Kahn was leaving, but said John Dunham would become acting chairman and chief executive, in addition to being president.

May faces escalating competition from top rival Federated Department Stores Inc. and other chains, including discount retailers such as Wal-Mart Stores Inc.

Just seven months ago Kahn helped lead a $3.24 billion acquisition of Marshall Field's department store group and some Mervyn stores from discount retailer Target Corp.