Thursday, 7 January 2016

Marks & Spencer CEO Marc Bolan to retire amid disappointing Christmas sales

As its general merchandise sales plummeted over the Christmas period, UK’s leading retailer Marks and Spencer (M&S) has announced that chief executive Marc Bolland will retire in early April and he will be succeeded by new director of general merchandise Steve Rowe.

General merchandise fell 5.8% on a like-for-like basis in the 13 weeks to 26 December.

On BBC's Radio 4 this morning, Bolan said he informed the board in the summer of 2015 that he was planning to leave in 2016. Bolland said he has completed core tasks such as restructuring the retailer's website in his six-year period at M&S.   He is set to stay in his position until the end of the current financial year.

Bolland said in a statement, "It has been a huge honour to lead one of Britain's most iconic companies." "I am delighted to handover to Steve Rowe as my successor. I have worked closely with Steve for six years and I am convinced that he will be a great leader for Marks and Spencer."

According to financial news reports, the retailer's share price has climbed over 15% under Bolland's regime, although sales in the current financial year have not taken off significantly yet. Merchandise was down 0.4% like-for-like in the first quarter.  M&S shares were up more than 1.5% in early morning trading.

Meanwhile M&S’ clothing rival and UK's second largest retailer - Next - also released disappointing Christmas sales figures earlier in the week while blaming it on unseasonal warm weather.   

“This quarter was unusual in that we didn’t have any cold weeks. There’s not a lot you can do. When it’s warm in winter people don’t buy T-shirts and shorts,” said chief executive Lord Wolfson. 

Next reported Tuesday revenue that missed analysts’ estimates, and, consequently, that profit will come in at the bottom of its forecast range.

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