Profile: WHSmith's chief executive in waiting, Steve Clarke

Clarke, managing director for the high street arm, is described by independent analyst Nick Bubb as “gritty”. Espirito Santo analyst Sanjay Vidyarthi says: “He is well known to the City and has played no small part in the success of the business.”

The 45-year-old has been at WHSmith for eight years, joining as head of marketing after he followed Swann from Argos where she was managing director and he was head of product marketing.

As Swann split the business into the high street and travel divisions, recognising WHSmith’s ability to gain from a captive audience across its stores in train stations and airports, Clarke took on the struggling high street division in 2008. WHSmith reported that Clarke has been “critical” in implementing its strategy.

He is well known to the City after years of presenting to analysts at results updates.

“Steve has been groomed for the chief executive job. He has been running the core business for a while now and he is steeped in Kate Swann’s strategy for cutting costs,” says independent analyst Nick Bubb.

Clarke helped Swann push through her strategy of changing the product mix, which saw the retailer shrinking its entertainment category and launching more innovative products in the tie up with ebook firm Kobo. When the Kobo launched last year Clarke said he expected the device to attract incremental sales.

Shoring up sales is certain to be a focus for Clarke. Swann’s strategy has famously generated profits by cutting costs out of the business while turnover declined and WHSmith has not generated a group sales rise since 2008. Before this the last increase was in 2002.

Analysts have long forecast WHSmith will need to start generating sales and increasing like-for-likes, as the scope for more cost cutting diminishes.

However, there are still some cost cutting wins to be made and this strategy is likely to continue, focusing on the high street division, for the next two years, says Conlumino analyst Matt Piner.

“It looks as though travel is the strongest part and it has more potential. One challenge WHSmith has got to overcome is downsizing the high street. It is half the business but it’s six times the space of the travel division.

“It seems they have brought Clarke in with a view to tackle these stores,” he says.

WHSmith has been trying out new store formats, opening 100 Kobo shop in shops that also provide customers with wifi, while it seems to be trying to sharpen its offer with fascias under WHSmith Books and just this week it opened a store on Baker Street displaying a WHSmith Office fasica.

Clarke will need to identify how WHSmith can use these more localised formats to its advantage.

Clarke will continue to push the travel division and grow it overseas. He is not shy of travel himself as, originally from Belfast, he worked in Australia for six years when he moved there in 1995. He worked in the country as marketing manager for Cable & Wireless Optus and then moved on to be marketing director of Vox Retail and Buy.com until 2001, when he returned to the UK.

It is unlikely Clarke will ruffle feathers with any new strategy, but as Swann prepares her final song, WHSmith is in safe hands.