Marks & Spencer’s Bolland to be replaced by M&S veteran Steve Rowe
The news coincided with M&S’s release of its Christmas trading figures, with its food sales providing most cheer in what were some pretty “disappointing” results.
Bolland has been ceo with M&S for the past six years, having previously headed up the Morrisons supermarket chain. During his time at M&S, the retailer has been unable to restore its previous strong overall retail performance – particularly for women’s clothing – although analysts have been complimentary about the restructuring work he had undertaken to restore M&S’s fortunes. However, it had continued to perform well as an up-market food and drink retailer, focusing primarily on own-label products.
Bolland will remain ceo and on the board until the end of the current financial year on April 2 2016 when he will hand over to Rowe.
Food sales growth
Rowe has been with M&S for more than 25 years and been a board member since 2012. Before joining the board, he worked in a range of senior positions across the business including director of retail and e-commerce and various positions in general merchandise.
In 2012, he was appointed by Bolland to the executive team as executive director, food and was appointed to the M&S board. In this role, he oversaw 12 consecutive quarters of like-for-like (LFL) growth and margin growth in food sales.
He was appointed executive director, general merchandise in July 2015.
Commenting on his appointment, Rowe said: “It is a great privilege to be appointed ceo of Marks & Spencer and to have the opportunity to lead this unique company and all its people forward.”
M&S’s said its third quarter results for the 13 weeks to December 26 represented an “excellent Christmas in food” but “general merchandise sales down”. Food sales for the period were up 3.7% (up 0.4% on a LFL basis), with record sales up 17% in the key Christmas week. But general merchandise sales were down -5.0% (-5.8% LFL).
‘Excellent Christmas in food’
“M&S had an excellent Christmas in food, delivering record Christmas sales and strongly outperforming the market,” said Bolland.
“General merchandise [GM] sales were disappointing. We continued to prioritise gross margin and held back from the heavy discounting seen across the market in the run up to Christmas. As a result, we now expect GM gross margin to be at the top end of the guided range.”
Following the announcements, Shore Capital analyst Clive Black noted that Bolland had “done a lot of very good work to fundamentally modernise and reposition M&S to be fit for the future in sustainably challenging markets”.
He added: “Rowe has a much stronger platform with which to take the business forward than Mr Bolland inherited”.
Black added that M&S’s food sales had been boosted by new store openings. “With such a performance M&S will have gained market share and we see this as highly creditable,” he said.
M&S is also reported to have begun a trial scheme to increase the size of its food halls.
