CANADIAN BILLIONAIRE Galen Weston has reinstalled Brown Thomas deputy chairman Paul Kelly at the head of the luxury retail chain in an unexpected reshuffle in which managing director Nigel Blow has left the group.

The return of Mr Kelly, who was chief of Brown Thomas between 1992 and 2003, comes in advance of the crucial Christmas shopping season in which the company hopes to regain some of the ground lost since recession set in.

He is expected to retune the business, which typically aims at one of the highest price points in Irish retailing, in light of lower spending by consumers at the top end of the market.

While Brown Thomas has yet to file its most recent accounts, Mr Blow warned last year of lower profits for 2008 and said conditions in 2009 would be tough.

With immediate effect, Mr Kelly will directly oversee the chain’s seven stores. He will continue in office as chief executive of Mr Weston’s Selfridges department store chain in Britain.

Incoming Brown Thomas managing director Stephen Sealey, formerly director of womenswear and accessories for the chain, will report directly to Mr Kelly and manage front-of-house operations day-to-day.

Mr Blow was buying and merchandise director at Harrods before he moved to Brown Thomas in succession to Dalton Phillips, who left Brown Thomas in January 2007 to become operating officer of sister company Loblaw, Canada’s biggest grocer.

“Outgoing managing director Nigel Blow has left the Brown Thomas group and his efforts over the last three years are greatly appreciated,” the company said yesterday. The reshuffle comes amid exceptionally tough conditions in the retail sector as consumers across the board rein in their expenditure.

“All Irish retailers are facing difficult economic circumstances at the moment but I believe that our strong brand heritage gives us a unique position in the market,” Mr Kelly said.

“I have been in the retail business for over 40 years and I know that the Brown Thomas group will continue to thrive and deliver the international quality that has earned us our exemplary reputation over many years.”

Mr Blow said last October that trading in the previous two months had become “noticeably” tougher. “We’re certainly mindful that the first half of next year will be tough, and I think that will be tough for everyone,” he said then.