HSN (HSNI) CEO Mindy Grossman reportedly rejected an offer from JCPenney (JCP) to become its permanent CEO when the two parties couldn’t agree on terms, according to a Wall Street Journal report.

Whoever the next JCPenney CEO is, he or she will have their hands full when they take the reins from interim CEO Mike Ullman.

The search for the next JCPenney CEO is taking a long time, and so it should. The person who takes the job — Grossman was a smart choice despite being unsuccessful in wooing her — will need to understand large-scale retail, have undertaken a turnaround or restructuring, be a good communicator both internally and externally, and be prepared to fail despite putting in a lot of hard work.

Becoming JCPenney CEO is a thankless job, much like becoming the coach or general manager of my beloved Toronto Maple Leafs — no matter how smart you are, the gods always seem to be pitted against you.

With these parameters in mind, here are my three choices to become the next JCPenney CEO:

JCPenney CEO – Third Choice

Jeffrey Genette, Chief Merchandising Officer, Macy’s (M)

One idea is to hire someone who has grown up in the department store milieu. In March, Macy’s (M) promoted Jeffrey Gennette from chief merchandising officer to president — a gesture that is likely meant to keep the 31-year Macy’s veteran fully engaged in its business until such a time as CEO Terry Lundgren is ready to step aside (which likely isn’t any time soon).

While Macy’s is a whole different kettle of fish, Gennette makes a good candidate for JCPenney CEO. Unfortunately for JCP, Gennette might not be willing to leave a company where he’s worked for 31 years. On the other hand, Lundgren is only 62; he might be in the head chair for another three to five years. If Gennette doesn’t want to wait to become a CEO, this might be his big break. Besides, it’s not a slam dunk that Gennette will become chief when Lundgren retires. Peter Sachse, Macy’s chief stores officer, is also in the running.

As a result of this uncertainty, JCPenney could land Gennette for a lot less than either Murphy or Meyrowitz would command — and that’s something when you consider its fragile state.

Gennette’s a long shot, but he wouldn’t be the worse choice in the world. Not even close.

JCPenney CEO – Second Choice

Glenn Murphy, CEO, Gap Inc. (GPS)

Say what you will about Gap Inc. (GPS), but CEO Glenn Murphy has done an amazing job since taking the helm in 2007. When he took over, Gap’s business was in disarray as former CEO Paul Pressler ran it into the ground during an ill-fated four-year stint. Since then, GPS stock has achieved an annualized total return of 15.6% — more than 9 percentage points better than the SPDR S&P 500 ETF (SPY).

Prior to joining Gap, Murphy ran Canada’s largest drug store chain — Shopper’s Drug Mart, now owned by Loblaw Companies (LBLCF) — growing revenues by 144% over a five-year period between 2002 and 2006 and growing operating profits by 115%.

Those are some pretty heady numbers, and it’s that kind of growth that the Fishers were looking for when they lured him out of temporary retirement in 2007.

So in the span of 13 years, Murphy has done a fantastic job running two large and incredibly different retail companies. Not only that, but he understands that people make or break a retail business, and so he’s upped the hourly minimum wage to $10 at all Gap stores in the U.S. It might not seem like much, but it’s a hell of a lot more than many firms are willing to do at this juncture in the conversation.

Imagine! A JCPenney CEO who understands how to fix and grow businesses and isn’t a jerk like Ron Johnson was purported to be.

I might be biased because I’m Canadian, but Murphy is one of the good guys in retail.

JCPenney CEO – First Choice

Carol Meyrowitz, CEO, TJX Cos. (TJX)

JCPenney customers will always be individuals in search of a deal. The company’s business model — which combines discount pricing with a never-ending stream of coupons to bring customers back time and again — was and is the backbone of the 101-year-old department store chain. The inability of former JCPenney CEO Ron Johnson to move the company away from its historical roots is proof positive that the JCPenney customer wants to look good while saving money.

The new JCPenney CEO needs to provide an excellent shopping experience while adhering to the final line of the previous paragraph. If he or she does this consistently, there’s a chance for JCPenney to be around for another century, which obviously would be great news for JCP stock.

A top choice to lead the company then is Carol Meyrowitz, currently the CEO of TJX Cos. (TJX), the discount retailer that operates 3,252 stores across several brands, including T.J. Maxx, Marshalls and HomeGoods in the U.S. and several others outside this country.

While the TJX business model is slightly different, the core customer isn’t.

Since Meyrowitz became CEO in January 2007, she has turned the company into a gold mine while boosting the stock price 23% annually. Owners of JCP stock could only be so lucky. Sure, Meyrowitz is 60, but that’s still seven years younger than interim CEO Mike Ullman. The age thing isn’t a factor.

The big issue is whether Meyrowitz would want to leave the safety of a great job at a great company to jump on board a department store behemoth that’s already claimed the reputation of one retail industry star. Furthermore, to lure her away from her current job, it would take huge sums of money, which JCPenney doesn’t really have.

Carol Meyrowitz as JCPenney CEO makes far more sense than Ron Johnson ever did. In my mind, she’s one of the best CEOs in America, and certainly the best in retail. The fit makes sense, but after Mindy Grossman snubbed JCP … I don’t imagine JCPenney wants to test the waters a second time.

As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.