‘The Co-op’s leadership jigsaw is still missing major pieces’

The Co-op has conspired to raise more questions than it has answered during the past six weeks amid a senior leadership reshuffle. 

Confusion reigned in the aftermath of the news that Steve Murrells will step down as group chief executive following the mutual’s AGM in May. 

Although Murrells will be succeeded on an interim basis by Shirine Khoury-Haq, the Co-op’s current finance and life services boss, the abrupt nature of the changes led some to question whether there was more to the news than met the eye. 

It didn’t appear to be an orderly, considered succession plan – Khoury-Haq is a temporary rather than permanent replacement, for now at least – and Murrells’ departure seemed to directly contradict a Co-op announcement from February.

Back then, when it revealed that food boss Jo Whitfield was taking a four-month career break from May to help her sons through exams, the Co-op said Murrells would take on day-to-day responsibility for the food business. News of his exit left a void at the top of that core convenience division. 

That gap will be filled imminently, Retail Week understands, with the appointment of Chris Whitfield and Matt Hood as effective “co-managing directors”. But with no permanent successor to Murrells in place, and chair Allan Leighton also poised to step down, the Co-op’s leadership jigsaw is still missing some big pieces.

Co-op insiders appear unconcerned. One tells me there are “many leaders in the food business who have been fundamental to our success” and says “our confidence in our food leaders remains strong and undiminished by the recent CEO changes”.

They also insist Jo Whitfield has been “preparing and supporting” the duo – and the rest of the food leadership team – for the impending transition. 

But that confidence does little to detract from the rather haphazard nature of the announcements, from what is ordinarily one of the soundest communications functions in the business. 

Unnecessary distraction

That, unfortunately, has drawn focus away from the legacy Murrells will leave behind and on to the questions hanging over the mutual’s leadership, what’s really going on behind the scenes at One Angel Square and what comes next for the group. 

We should be celebrating the brilliant work Murrells has overseen during his decade running first the food business and then the wider group.

We should be marking the potential appointment, following her interim promotion, of the Co-op’s first female chief executive, Khoury-Haq.

We should be highlighting the trail Jo Whitfield has blazed for parents not just in retail, but in all forms of business, by taking an extended period of leave to help her sons through exam season.   

“Murrells departs with his legacy intact: a lynchpin of the team that dragged the Co-op back from the brink”

But instead, we have been left asking: what’s really going on at the Co-op?

The mutual has attempted to shrug off such inconvenient questions about the timing and the nature of the changes at the top, pointing to the strength and depth of the senior leadership team in its food division – including Hood and Chris Whitfield – that will steer the ship.

But if that bench is so strong in the eyes of Murrells, Leighton and the Co-op board, why were those candidates not entrusted with leading the food business straight away, not seven weeks after the announcement of Jo Whitfield’s break? 

Why was Murrells handed day-to-day responsibility for the division if the Co-op knew he was stepping down in May, too?

If succession planning was as crucial as the Co-op made out in its announcement of Murrells’ departure, why has that not resulted in something more concrete than an interim appointment? 

The Co-op way

As abrupt as it may be, there appears nothing untoward about Murrells’ departure. Those close to him suggest he was only willing to commit to the Co-op for another year or two and insist he does not have another job lined up.

Even so, very little about the timing and communication of the changes adds up. It all feels rushed, reactive and chaotic – a far cry from the years of success and stability we had become accustomed to under Murrells and his predecessor, Richard Pennycook.

Whatever comes next, Murrells should be able to leave with his head held high. His work in getting the food business back on track – refitting stores, revamping own-label ranges and cutting prices – was a pivotal part of the Co-op’s revival. 

After stepping into the top job to succeed Pennycook – the man who fought the flames of a failing bank and a drug scandal – Murrells has been able to put the Co-op back on a more innovative footing once more, launching its own ecommerce food proposition, partnering with businesses such as Starship Technologies, revitalising its membership scheme and finally selling the Co-op Bank. 

Murrells departs with his legacy intact: a lynchpin of the team that dragged the Co-op back from the brink, and a good man who did business the right way – the Co-op way.

But the Co-op must get its house in order if it is to protect and build on what he leaves behind. 

• Get the latest grocery news and analysis straight to your inbox – sign up for our weekly newsletter