By the time you read this issue, Simon Fox might have been announced as chief executive of ITV. Then again, the HMV chief executive might have decided to stay put. Fox’s phone has been going straight to voicemail this week as one of retail’s quiet men found himself thrust into the spotlight as he was pursued for one of the biggest jobs in the media.
HMV’s board don’t want him to leave, and neither do investors, judging by the share price reaction. Whatever happens, though, the fact that the highly likeable Fox’s name is being linked with one of the most prestigious – and unquestionably most challenging – jobs in the media sector shows how the impressive job he has done at HMV has been recognised, not just within retail but beyond.
Fox won’t be the only retail leader catching the eye of chairmen outside the sector as they look to inject fresh talent into their boardrooms. Despite the headlines and the collapses, when it comes to the publicly quoted retail sector, the real story of this recession is how most businesses have successfully maintained their strong performance. Put simply, and with a handful of exceptions, the current crop of retail chief executives are very good managers.
Retail isn’t a career for life any more. For every dyed-in-the-wool Rose or Leahy, there’s a former management consultant like Fox or Ian Cheshire. In the same way as leftfield candidates like Marc Bolland have come in and shaken up struggling retailers, it should come as no surprise that non-retail companies will start looking to retailers who have demonstrated the rare talent of being able to transform businesses to do the same to theirs.
Few businesses are more competitive or faster moving than retail, and that makes retail leaders hot property – rather like New York, if they can make it here, they can make it anywhere.
That’s not to say working in other sectors is easy, as the incredible barrage of problems faced by Andy Hornby at HBoS showed. Like HMV at the time Fox took charge, ITV presents structural problems that seem almost intractable to media observers.
But a big job is a big job, and will always present temptations. And any retailer needing reassurance about taking a bold step can find some comfort in the renaissance of Hornby, which shows that if it doesn’t work out, there will always be a second chance on the table for retailers who’ve shown they can cut it at the highest level.
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