May Stores Chairman Resigns

May Department Stores Co. said Friday that Chairman and Chief Executive Gene Kahn had resigned, a step analysts said would help bring in new blood to revive the retailer’s sales.

The St. Louis-based owner of Robinsons-May said it would immediately begin searching for a successor, triggering a 4% jump in its share price.

Its statement did not say why Kahn was leaving, but said John Dunham would become acting chairman and CEO, in addition to his current role as president.

Asked to explain why Kahn left, company spokeswoman Sharon Bateman said, “We have no comment. His resignation has been accepted by the board and is effective today.”

David Griffith, an analyst at Tradition Asiel Securities Inc., said “hope that change at the top could drive some better performance for the company as a whole” probably drove May’s stock higher.

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

Kahn became president and CEO in 1998 and three years later took on the title of chairman.

His departure came just seven months after he helped lead a $3.24-billion acquisition of the Marshall Field’s department store group and some Mervyn’s store locations from Target Corp. That deal was slammed by some analysts who thought it carried a high price tag.

Even with the acquisition, it has posted poor sales results for more than three years.

In after-hours trading, May soared to $29 after closing up 11 cents at $27.84 on the New York Stock Exchange.