Retail Day
Retail Week, today
Moneybags Marc
Details of Marc Bolland’s pay package have prompted unsurprising outrage from shareholder groups, and it is certainly a punchy package. To be fair a large element of it relates to share options that Bolland forfeited when he quit Morrisons, but nevertheless the exceptional first year bonus which could potentially be 400% of salary really catches the eye.
Now Bolland is a big name with a big job ahead of him, but shareholders will ask, with justification, what Bolland will need to achieve in order to make this bonus. Would be interesting to know what Stuart Rose makes of it all - remember he had to forego his bonus last year in order to quell shareholder dissent.
In other news today, the TNS grocery data has just come out and, as we’d suspected, Asda appears to be the retailer which has lost out, with a small loss of share while Tesco has grown its marginally and Morrisons, Sainsburys and Waitrose continue to prosper. In fairness, Asda’s lack of convenience stores will have hurt it when the snow hit in January, but nevertheless the appearance of money-off vouchers in the weekend news papers was a new and surprising development.
I wonder if we might see Asda subtly shifting its promotional stance and adopting the sort of coupon offers it has traditionally eschewed? It has always said that EDLP was enough and it’s a strategy which has had amazing success both for Asda and Walmart more broadly, but Tesco certainly seems to have regained the momentum with its double Clubcard points deal and Asda won’t sit back and allow its bigger rival to claw back market share.
on Feb 2nd, 2010 at 4:55 pm
M and S will have to work hard to save cost and drive service in an edgey time ahead, so with his work cut out I reckon MB will not have it lightly? I don’t find a big wedge for delivering that massively offensive.