Critics might consider him guilty by association after some torrid years at the DIY giant, but there is no doubt that what Kingfisher needs is someone who knows the business and can hit the ground running. Cheshire has not only been boss of B&Q, but also run the business in the Far East, so knows Kingfisher inside out and is aware of what needs to be done.
The numbers don’t show it, but Cheshire has done a vast amount of work to get B&Q in shape, reviewing ranges and revamping stores. His misfortune has been that his efforts have coincided with a slowdown in the UK DIY retail market.
With a housing slowdown forecast, market conditions aren’t going to get any better in the UK and are set to worsen in France. So this will put even more pressure on Cheshire to get the operational execution right, while taking a radical look at the business as a whole.
The danger of giving an internal candidate the top job can be that they’re too comfortable with the status quo. But Cheshire can’t afford not to think the unthinkable, whether that means selling parts of the international empire or shaking up the senior team. And an able retail operator as new MD for the UK will be a must.
Not many in retail would wish the likeable Cheshire anything but the best of luck, but he will know more than anyone that the very shortest of honeymoons lies ahead.
Credit where it’s due
Asked to guess which has been the best performing quoted retailer for the past three Christmases, Game wouldn’t be the answer on everyone’s lips. Yet, despite being criticised for being the ultimate cyclical stock, its performance has been consistently outstanding (page 16).
There’s no doubt that games were the big product this Christmas and this clearly played a part in 2007. But, by widening its appeal to women and casual gamers, the company has built a platform equipped to ride out the product cycle. Maybe now it will start to get the credit it deserves.
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