Retail Day
Retail Week, today
Leaver’s a leaver
The Marks & Spencer full year results were just about as expected but there were a few surprises in there, not least the departure of international director Carl Leaver. Leaver was being touted as one of the more likely internal candidates to succeed Sir Stuart Rose, but something has obviously gone wrong because he’s leaving, although in slightly less acrimonious circumstances than Steve Esom, who arrived at the same time as Leaver in 2007 and was also briefly seen as succession material.
Stuart Rose got a lot of questions about Leaver’s departure in the press conference this morning, and also about the cut in the dividend, which is sure to annoy the company’s army of private shareholders - the AGM should be fun this year. Rose was nevertheless on good form, as he always appears to be, brushing off questions about everything from the extra charges for outsize bras to the staff bonus with his customary ease.
Nevertheless, the big elephant in the room is the succession and I thought Ian Dyson and Kate Bostock looked uncomfortable as Rose tackled questions on the subject. In reality, I don’t know anyone who thinks the successor will be internal but with Justin King having ruled himself out the list of external candidates isn’t that long either.
on May 19th, 2009 at 2:56 pm
With Woolworths dead and gone, it is much more of a concern to High Streets and beyond that M&S finds itself in turbulent waters. Woolies died through mixed management strategies and customer apathy but it is unlikely that M&S will go the same way. However, M&S should beware of any boardroom stubbornness or snobbery when it comes to business plan strategy and succession planning. I get a lot of grassroots comment on M&S from ordinary shoppers rather than industry pundits and there is more than enough discontentment with range, quality, price and service for comfort. It is essential for the company to maintain steady focus on its core raison d’etre and not mess about with one of the most trustworthy names in retailing. Unfortunately, Sir Stuart Rose comes across as a little too relaxed and smug sometimes, whatever the news and the last thing M&S needs is a clone as CEO.
Joe Cushnan
Interim Management & Freelance Media