Analysis: The biggest hires and fires of 2019

Hires

Carrefour’s Thierry Garnier tasked with turning around Kingfisher

Kingfisher has had a difficult few years under the helm of Veronique Laury as profits plunged and observers began to question if her complex transformation plan would pay off for the DIY group.

Laury stood down earlier this year and Kingfisher has looked to Carrefour veteran Thierry Garnier to steady the ship. 

Kingfisher cited Garnier’s experience in leading “significant businesses through complex change programmes while operating in competitive and rapidly changing retail environments” when unveiling his appointment in June.

This is Garnier’s first role outside of Carrefour, where he spent 22 years of his career.

He held positions such as managing director of its supermarkets in France, international executive director and most recently chief executive of Carrefour China.

He’s wasted no time in getting stuck in at Kingfisher. Last month, when unveiling a “disappointing” sales drop, Garnier said: “It is clear that there is much to do to improve our performance. Kingfisher’s trading during Q3 was disappointing. 

“My early assessment is that we have not found the right balance between getting the benefits of group scale and staying close to local markets. We are suffering from organisational complexity, and we are trying to do too much at once with multiple large-scale initiatives running in parallel. 

“Altogether, this has brought disruption to sales and has distracted the business from focusing on customers.”

This leaves Garnier with a fixer-upper on his hands at Kingfisher.

Majestic woos back Colley

One executive not part of Garnier’s Kingfisher recovery is chief trading officer John Colley, who was lured back to former employer Majestic Wine by new owner US firm Fortress Investment Group

Colley, who had a two year stint as managing director of Majestic’s retail arm from 2015 to 2017, will lead “ambitious growth” at Majestic.

Unlike the previous owner, who had planned to scale down Majestic’s store estate and sell off assets to focus on growing sister brand Naked Wines, Fortress and Colley believe stores are crucial for the business.

Colley said last month: “The key to Majestic’s future is simple. It’s the service our people provide, backed up by a range you simply cannot get anywhere else. That connection isn’t what it should be - so we need to get the wines back in that our customers (and staff) love first.

“That isn’t rocket science. Customers enjoy the connection to Majestic - to our wines, to our people and to our stores. We want to look at ways we can grow that connection further and not peel it back. That means bricks, clicks and flicks.”

Whistleblower Wylie heads to H&M

One of the more eyebrow-raising hires of the year goes to H&M, who appointed Christoper Wylie, the man responsible for exposing the misuse of data by political consultancy Cambridge Analytica.

Wylie was appointed research director of the fashion retailer in January.

Digital is high on the agenda at H&M as it strives to maximise its use of data and artificial intelligence to help drive customer loyalty, predict future sales, and support its sustainability and ethics credentials.

Wylie takes on the role on a consultancy basis to help H&M better access data insights on customers, products and markets.

Nike nabs former Ebay boss

Nike’s Mark Parker will step down as chief executive in the new year and will be replaced by former Paypal and Ebay executive John Donahoe.

The tech-savvy Donahoe makes for a good fit for the increasingly data-driven brand, which is building a direct-to-consumer empire.

Unlike Parker, whose career started as a footwear designer for Nike, Donahoe brings his tech knowledge to the table, as Nike seeks to extend its tech-enabled store portfolio and online ecosystems.

Ikea hires new UK boss

After ten years away from the furniture retailer, Peter Jelkeby returned to Ikea in May to take the helm at its UK and Ireland business.

Jelkeby, who spent more than 20 years at Ikea, had been working for Ikea’s Swedish rival Clas Ohlson, where he was most recently acting chief executive. 

He replaced Javier Quiñones at Ikea, who left to head up the furniture retailer’s US division in March.

Jelkeby returns as Ikea focuses on building its multichannel capabilities, as well as its upping sustainability credentials.

Founder Roberts returns to AO.com

After a brief two-year stint as executive director, John Roberts, who famously founded Ao.com “on the back of a fag packet”, returned as chief executive of the online electronics retailer in January this year.

Roberts replaced Steve Caunce, who sought to “rebalance his lifestyle” after a period of “intense activity” at the business.

Roberts has wasted no time shaking things up in the business he founded. Since his return he has launched a “game-changing” mobile phone division, has piloted white goods rentals through a partnership with housing associations, and has invested in Europe’s biggest fridge recycling plant.

He has also taken the tough decision of closing it’s fledgling Netherlands business in order to focus on bigger European markets.

Kate Swann becomes chair of Moonpig

Former WHSmith boss Kate Swann returned to the world of greetings cards in August when Moonpig signed her up as chair.

Swann is highly regarded in the retail industry, joining Moonpig after six years as chief executive of travel food and beverage operator SSP Group – which operates eateries including Upper Crust and Ritazza across airports and train stations.

There had been much speculation over what Swann would do next following her departure from SSP. 

She was spoken of as a potential chief executive of DIY giant Kingfisher and chair of John Lewis Partnership before joining Moonpig.

The industry will be watching to see which other board positions she might fill next.

Former Asda man Jones heads to Joules

Former Asda clothing boss Nick Jones joined British lifestyle retailer Joules as chief executive in September.

Jones succeeded Colin Porter, who became chair of Moss Bros earlier this year.

Jones had spent eight years at Asda where he led it’s George clothing brand and general merchandise. He sat on the grocery giant’s executive board and last year was given a wider remit of senior vice president of commercial, with responsibility for all trading divisions, including grocery.

New Look promotes Nigel Oddy

There was much speculation that ex-House of Fraser boss Nigel Oddy was hired as a chief executive-in-waiting when he joined New Look as chief operating officer in April this year. His wait was a short one as was handed the top job this month.

Oddy will start the new year as chief executive as Alistair McGeorge, who was parachuted in to rescue New Look for the second time in November 2017, steps aside to become non-executive chairman.

Oddy takes over as New Look’s turnaround efforts start to pay off. 

The retailer spent much of the year ploughing ahead with a restructuring plan, shutting 60 stores via a CVA, and agreeing a debt-for-equity swap with key stakeholders to shore up its balance sheet.

For the year ending March 30, New Look reported an underlying operating profit of £33.2 million compared to a loss of £35.7 million the year before.

Fires

Ted Baker in turmoil as founder and chairman exit

Fashion retailerTed Baker has had a tumultuous year.

Founder Ray Kelvin stepped down from his role as chief executive in March following allegations of misconduct and was replaced by long-time chief financial officer Lindsay Page.

Kelvin, who denied the allegations, said he resigned from the retailer that he had led for three decades, “so that the business can move forward under new leadership”.

However, Page was not to last long.  After issuing its third profit warning of the year this month and admitting that it had overstated the value of its stock by £25 million, both Page and chair David Bernstein exited the business.

Newly appointed finance boss Rachel Osborne has been named interim chief executive.

Ashley ousts Debenhams chair

Despite Mike Ashley’s Debenhams takeover ambitions ultimately failing, the retail mogul was successful in staging a coup at the start of the year and ousting the department store’s chairman Sir Ian Cheshire.

He also succeeding in booting Debenhams’ then-chief executive Sergio Bucher off the board as two major shareholders, including Sports Direct, voted against the pair’s re-election.

The extraordinary move did not, however, pave the way for Mike Ashley to take charge of Debenhams as the department store’s lenders took control of the business following a pre-pack administration in April.

Turnaround specialist Stefaan Vansteenkiste was subsequently drafted in in August as the struggling business strives to carve out a future.

Sainsbury’s Argos loses Rogers

Sainsbury’s Argos chief executive John Rogers stepped down in October for an opportunity that was “too good to miss”.

After 14 years at the grocer, Rogers exited to become chief financial officer at advertising giant WPP.

Rogers had been regarded as a natural successor to Sainsbury’s chief executive Mike Coupe.

His departure has left a sizeable gap that has been filled by not one, but two Sainsbury’s execs.

Instead of replacing the retail veteran, his responsibilities will be split between two of the existing Sainsbury’s team – operations director Simon Roberts, and commercial director Paul Mills-Hicks.

John Lewis Partnership restructuring leaves Collins out in the cold

John Lewis Partnership revealed a dramatic restructure in October, which included running its department store and grocery arms as one business.

The overhaul resulted in the departure of Waitrose managing director Rob Collins as John Lewis’ managing director Paula Nickolds became executive director, brand, and responsible for leading both businesses. 

Collins is not the only departure with 75 out of 225 JLP management roles lost across head office as part of the radical restructure.

M&S fashion boss Jill McDonald departs

Marks and Spencer head of clothing and home Jill McDonald left the retailer in July after just two years in the role.

Chief executive Steve Rowe said at M&S’s AGM in July that 2019 was a “troubled year” for fashion.  He revealed that buying errors meant that at times key products such as jeans had sold out, resulting in the poorest stock levels “I have ever seen in my life”.

Unsurprisingly, McDonald exited not long after Rowe’s damning critique.

McDonald re-emerged earlier this month when she was appointed chief executive of Costa Coffee earlier this month. Tesco F&F Clothing boss Richard Price has been drafted in as her replacement.

Boden boss Easterbrook exits

Boden chief executive Jill Easterbrook stepped down from the catalogue retailer in September as she looks to build a non-executive portfolio.

Easterbrook, who was previously Tesco’s clothing boss, had spent three years at the helm of Boden. Founder Johnnie Boden said that Easterbrook had helped the business to “grow up”.

“She has been instrumental in building Boden for the future and driving our ambition as an international, digital first, multi-channel business,” he said.

Boden has not replaced Easterbrook, instead sharing her duties between executive chair Julian Granville, finance boss Paul O’Leary, who has been promoted to chief operating officer, and the rest of the management team.

Arcadia loses Price and Brady

It’s been a turbulent year for Arcadia. The business swung to a £93.4m pre-tax loss in its last reported financial year and narrowly managed to secure backing for a CVA that will allow it to close up to 50 stores.

The business has also lost some key personnel.

Topshop chief executive Paul Price stepped down from his role earlier this month after deciding to relocate back to his US homeland.

Price joined the struggling fast-fashion retailer in 2017, after a ten-year stint at luxury fashion house Burberry. His successor has yet to be appointed.

Meanwhile, The Apprentice star Baroness Karren Brady stood down from Taveta Investments, the holding group for Arcadia, less than two years after she was appointed with a remit to “beef up corporate oversight” and “sort out” governance issues.

No reason was given for her resignation. However, it followed calls for her to stand down in the wake of the scandal surrounding Sir Philip Green, with him accused of racial and sexual harassment.

Angela Ahrendts leaves Apple

Apple vice-president of retail Angela Ahrendts left the business in February after five years as the highest paid executive at the company.

Ahrendts was the right-hand woman of boss Tim Cook, and many thought she would be his eventual successor.

Ahrendts, who was chief executive of Burberry prior to joining Apple, spearheaded the transformation of Apple’s flagships to ‘town square’ layouts.

Cook said Ahrendts had been ”a positive, transformative force, both for Apple’s stores and the communities they serve”.

She was succeeded by the company’s current vice president of human resources Deirdre O’Brien, who has been with Apple for 30 years.

Naked Wines founder Gormley steps down

Naked Wines founder and boss Rowan Gormley is to step down following the Christmas trading period and the sale of its Majestic business.

Gormley, who founded Naked in 2008 and took charge of the enlarged business following its merger with Majestic Wine in 2015, will hand the reins to current chief operating officer Nick Devlin.

At 34, Devlin will become the youngest chief executive of a listed company in the UK when he takes the reins next year. 

The retailer said the move was “one of a number of important changes to enable Naked to enter the next chapter of growth” and fulfil its “significant potential” in the US market.

Former Argos boss John Walden has already taken over as chair to spearhead its American aspirations.

Monsoon Accessorize boss Allen exits

In August, Monsoon Accessorize chief Paul Allen departed after six years at the helm, and will not be replaced.

The retailer has been struggling of late, launching a CVA in June to cut rents across its store network.

Founder and chair Peter Simon does not wish to hire a new chief executive, and will instead share the role with chief operating officer Nick Stowe.