UK Retail CEO Tracker Trends at the Top 2018 UK Retail sees a 22% increase in CEO change in 12 months amidst ongoing sector pressure | CEO TRACKER 2018 | Introduction The UK economy has been described 2017 HIGHLIGHTS: as “‘steadied’ by static infl ation and 1 rising exports as a result of Brexit” but Four notable fi ndings from this year’s UK the uncertainty predicted at the end of Retail CEO Tracker: 2017 is well refl ected by the UK Retail . There were 50 changes in CEO in 2017, Industry. As predicted in our UK Retail compared to 41 in 2016 – up 22% from CEO Tracker this time last year, the past the previous year. 12 months has seen a signifi cant increase . The number of female CEOs appointed in the number of CEO changes in UK increased slightly from eight to nine Retail, up from 41 changes in CEO during – but represented an overall decline percentage-wise, on the year before. 2016 to 50 by the end of 2017. More CEOs were appointed from 2 According to the Offi ce of National Statistics , backgrounds in Operations this year, during the latter part of 2017, the UK’s GDP with Finance a close second. grew 0.4% in the quarter, unchanged from the previous estimate, and down from the . Listed retailers have shown restraint in 0.6% growth this time last year. With the awarding salary increases as a result of public scrutiny on pay. weak pound continuing to fuel infl ation, and increasing pressures on margin at a time where the sector is continuing to go through signifi cant digital transformation, it is unsurprising that so many retailers have looked to change CEOs in the past year. Interestingly, whilst during the past 12 months there has been a notable continuation of the trend to appoint a signifi cant number of CEOs from backgrounds in Finance, this year we saw Operators taking the top spot, with marginally more CEOs appointed from longstanding backgrounds in operations and general management. Nine female CEOs were appointed in the past 12 months; up from eight in the previous year, but percentage wise, dropping from 19.5% to 18% overall. 1 Richard Partington, “The Brexit economy: is the worst of the 2017 slowdown over?”, The Guardian, 28 November 2017. 2 "UK incomes see sluggish growth", BBC News, 22 December 2017 2 3 | CEO TRACKER 2018 | Changes in company ownership triggered (The Original Factory Shop), Jo Jenkins (White some of the shake ups in the past year, notably Stuff) and Manju Malhotra/Daniela Rinaldi3 the sale of Jaeger and Style Group Brands (Harvey Nichols). (formerly Jacques Vert), Go Outdoors, Nisa However, the percentage of female CEOs and The Body Shop. appointed during 2017 at 18%, represents a At the close of 2017, five CEO seats remained decrease on the previous year from 19.5% vacant, at New Look, Poundworld, Dr in 2016. Whilst in real terms the number Overall changes Marten, Nisa and Charles Tyrwhitt, with Nisa increased from eight to nine year-on-year, the appointing Arnu Misra as interim CEO, pending overall number of CEO changes increased Compared to last year’s 41 changes, 2017 of the year (Dunelm’s appointment of Nick deal approval by the CMA in March 2018. In all considerably more, and the number of women Wilkinson as its new Chief Executive, replacing saw a significant uplift with 50 changes other cases, either investors or retail industry appointed as CEO did not keep pace with this John Browett who left earlier in the year). across the Retail sector. 14 of those veterans have been appointed as either interim change. appointed came from strong Operator Whilst in the previous year’s survey (2016) CEO or interim Executive Chairman until a Of the nine women appointed, three were we noted the significant rise in the number of permanent appointment is made. backgrounds; closely followed by 12 from already proven CEOs; Mary Homer at The CEOs appointed from Finance and Strategy Finance backgrounds. White Company, Miriam Lahage at Figleaves backgrounds, it is notable that over the past FEMALE REPRESENTATION AT THE TOP (a division of N Brown) and Lisa Montague 12 months, retailers have appointed more BACKGROUND OF CEOS APPOINTED at Aspinal of London. Three of the female CEOs with strong Operator / broad General CEO seats filled were as a result of internal Management backgrounds, representing 28% promotion; Jo Whitfield at Co-Op Food of the total. 6% Retail, Claire Webb at Go Outdoors and Manju Despite this, those from a Finance background 20% Malhotra/Daniela Rinaldi as joint MDs at did continue to represent a significant Harvey Nichols.2 percentage in close second, representing 17% This year most women CEOs were appointed 30% 24% of the total, followed by Product at 20%, into smaller Fashion, Apparel or Home Commercial/Buying at 16% and Strategy at 6%. businesses (Boden, Go Outdoors, Harvey A significant number of the hires throughout Nicholls, White Stuff, The White Company, 2017 have involved the appointment of TOFS, Figleaves, Aspinal of London). The individuals with strong commercial experience notable exception to this was the appointment to help businesses develop their processes of Jo Whitfield as divisional CEO at Co- 21% and steer them through the uncertain 80% Op Food Retail – the only woman to have economy. This highlights the difficult trading been appointed this year into a larger Retail 26% conditions and the need for companies to be business and into Food. more lateral and creative in their approach. Notable examples include Emma Fox at The Original Factory Shop, Robbie Feather at Fenwick, Graham Stapleton at Halfords and Women Strategy Background David Haydon at Bunnings, and in both of Men Commercial/Buying Background the Poundshop operators at Poundland and Product Background Poundstretcher with the appointments of One of the core topics of debate over the last Barry Williams and Chris Woods respectively. Finance Background few years has been how to get more women into the top jobs. This year, nine of the CEOs Operations/GM background Unsurprisingly, those in Fashion and Apparel have tended to hire more CEOs with a product appointed (18%) were female. Seven of these take on the CEO role for the first time Claire Across both publicly-quoted and privately- background, with Aspinal, Dunhill, Reiss, White Webb (Go Outdoors), Jill Easterbrook (Boden), owned businesses, 2017 was a year of Company, White Stuff and Top Shop all being Jo Whitfield (Co-Op Food Retail), Emma Fox significant change, with announcements within good examples; reflecting the need to drive the sector continuing even into the final week differentiation and newness in the sector. 3 Note that in the case of Harvey Nichols where Manju and Daniela have been appointed as joint MDs, this has been calculated as one appointment, for statistical purposes. 4 5 | CEO TRACKER 2018 | This year the number of CEOs appointed SIX YEAR TREND OF FEMALE CEO APPOINTMENTS IN UK RETAIL as a result of internal promotion fell to 40% 10 30% from 47% the year before. Also notable is the fact that these internal appointments were 25% not, in all cases, the result of a planned CEO 8 succession, but due to the need to draft in 20% an existing Chairman or Non-Executive to 6 caretake the CEO seat at a time of change 15% (Poundworld, Nisa, New Look and Dr Martens). Further, three of the internal hires initially took 4 10% on the top job as interim CEO, before being confi rmed as the permanent appointment, 2 5% as in the case of American Golf, Mamas and Papas and The Co-operative Food Division. Interestingly, all three had come from a 0 0% 2012 2013 2014 2015 2016 2017 Finance background. Number of Women appointed Percentage of Total CEO appointments Inside or Outside of Sector? The six-year trend from 2012-2018 in Female CEO appointments shows no improvement in the In the previous year’s survey, we noted that number of women appointed into CEO roles in the industry – typically remaining at eight-to- a number of Retail CEOs had either left nine female CEOs appointed per year, irrespective of the overall number of CEO changes in the the sector, or moved into the sector for the industry. fi rst time. This year the trend has been to appoint predominantly from within the Retail CEO tenure industry. This suggests greater caution with It is interesting to note that of the 50 CEO a desire to appoint those with proven Retail changes, 50% of the exiting Chief Executives INTERNAL PROMOTION TO CEO experience. The notable exception to this was (25) had been with their respective businesses the appointment of Alex Williamson as CEO of for four years, or in some cases considerably House of Fraser, from a prior background as less time. This speed of change within the CEO of Goodwood. industry refl ects the increasing pressures on CEOs to deliver within ever shorter timelines, International CEO driven by shareholder demand, margin appointments pressure & increased competition from 39% pureplay online retailers. There was a marked drop-off in the number of non-British CEO appointments this year. Whilst Two exceptional changes were noted this in previous years we have seen as many as 14 year – that of John Colley & David Boynton. non-British CEO’s appointed (2013), this year John Colley’s appointment at Hobbycraft was 61% the number was only fi ve – Paul Price (Top short-lived, as he opted to resign after only Shop), Andrew Magg (Alfred Dunhill), Miriam two months in the role, with the position yet Lahage (Figleaves), Christian Mazauric (B&Q) to be re-appointed.
Details
-
File Typepdf
-
Upload Time-
-
Content LanguagesEnglish
-
Upload UserAnonymous/Not logged-in
-
File Pages9 Page
-
File Size-