British high street stalwart Marks and Spencer announced on January 7 that the group’s six-year CEO Marc Bolland has informed the board of his intention to step down at the end of the financial year. The announcement of Bolland’s resignation follows the news this same week that third-quarter sales for the period leading up to December 26 were down 5.8 percent on last year, though sources at the company claim the two items are unrelated.
Speaking on a conference call with reporters, M&S chairman Robert Swannell insisted there was no pressure from either the board or shareholders for Bolland to step down. The chairman went on to thank Bolland for his six years spent at the helm, during which time he led a sizeable investment in new infrastructure and capabilities. The group also confirmed that the personnel change had been planned “for years”, and that Bolland informed the board of his intention to step down in the summer of 2015.
Bolland’s resignation follows news that third-quarter sales for the period leading to December 26 were down 5.8 percent. Sources at the company claim the two items are unrelated
The reigning CEO will be succeeded by executive director of general merchandise and 25-year M&S veteran Steve Rowe. “Steve has a deep knowledge of Marks & Spencer and a proven track record of delivering results in key parts of the business”, said Swannell. “It is now positioned for a digital age, with its own online platform and dedicated e-commerce distribution centre, improved design and sourcing capabilities in general merchandise, and an industry-leading track record of growth and innovation in the food business. Marc has put Plan A at the heart of the business and leaves a strong sustainability legacy.”
Although the retailer’s sales were generally disappointing, there was positive news on the food front (up 0.4 percent), and the company saw record sales in the Christmas week (up 17 percent). The challenge for Rowe is whether he and his executive team can get to grips with the price war being waged between Britain’s established giants and discount chains Aldi and Lidl.