Morrisons chief takes over M&S

Nov 19 2009 by Iain Laing, The Journal

MARKS & Spencer has named the highly-regarded boss of supermarket chain Morrisons as its new chief executive.

Marc Bolland succeeds M&S executive chairman Sir Stuart Rose, who will continue as part-time chairman.

The 50-year-old Dutchman joined Morrisons in 2006 as chief executive and has transformed the once-ailing chain into the fastest growing of the big four grocers.

He will take up his position in the new year. His strong reputation in the City was highlighted by the share prices of the two firms following the announcement, with M&S up 6% and Morrisons down 4%. M&S’ succession plans have been the subject of speculation since Sir Stuart stated his intention to leave the company by July 2011 at the latest.

Senior managers including clothing head Kate Bostock, financial director Ian Dyson and food division chief John Dixon were all seen as potential candidates for the job of chief executive.

But in the end it was Mr Bolland’s achievements at Morrisons which caught the eye of the M&S board.

Sir Stuart said: “I am delighted that Marc is to be M&S’s next chief executive.

“He brings a wealth of consumer marketing experience and has made a great success of his time at Morrisons.”

Mr Bolland said: “M&S is one of the world’s great brands and I am very pleased to be given the opportunity to lead the company forward at this exciting stage.”

Morrisons, which has about 400 stores and 124,000 staff, has outperformed the supermarket sector in recent months, with till roll growth of 8.5% in the 12 weeks to November 1, according to TNS Worldpanel figures.

As part of Mr Bolland’s turnaround strategy, Morrisons rebranded its stores, launched an advertising campaign featuring celebrities Denise Van Outen and Richard Hammond and staged promotions such as Sunday lunch for four for £4.

Chairman Sir Ian Gibson said: “The Morrisons Group has a strong and capable senior management team who will continue to deliver the business strategy which has enabled Morrisons to achieve market leading growth this year whilst the board identifies a suitable successor.”

Sam Hart, a retail analyst at Charles Stanley Stockbrokers, said: “He really understands the food and beverage markets, but he has no track record in clothing, so from that point of view, he has got a lot to prove.”