MARKS & SPENCER reshuffled its top management yesterday, confirming that Kate Bostock, head of all of its non-food, would step down as it reported its worst trading in clothing and homewares for three years.
Ms Bostock will be succeeded by John Dixon, the head of M&S’s food division, who had been a candidate to become chief executive when Marc Bolland was appointed two and a half years ago.
The appointment as executive director for general merchandise cements his position as heir apparent to Mr Bolland.
In a surprise move, Belinda Earl, the former chief executive of Debenhams and Jaeger, will join as style director, working part-time, to bring fresh flair to M&S’s clothing offer.
Ms Bostock will pursue “other interests”, according to the company. The experienced clothing executive has been courted by Asos, and also held talks with New Look, but could take some time off. She will leave on October 1st.
The Financial Times revealed 10 days ago that Ms Bostock would step down at the annual meeting, following a year of tensions.
M&S also confirmed its worst trading for three years, with sales of clothing and homewares, from stores open at least a year, down 6.8 per cent, the weakest since the 2008-2009 financial year.
UK like-for-like food sales rose 0.6 per cent for the three months to the end of June. Steve Rowe, a longstanding MS director, will take over as head of food.
The reshuffle raised eyebrows in the retail sector, given that Mr Dixon has no experience of clothing. It means that both Mr Bolland and now the head of M&S’s non-food division, which accounts for the lion’s share of profit, come from a food rather than fashion background.
Ms Earl’s last role was as chief executive of Jaeger and Aquascutum. Jaeger was sold in April, while Aquascutum went into administration. She left Jaeger and Aquascutum last November, because of poor health.
Some retailers questioned whether she had the right skills to revive M&S’s womenswear, which has lost market share over the past three months but others thought she would be well suited to M&S’s audience.
Mr Bolland denied the reshuffle was an admission that M&S had got its womenswear offering wrong: “We have great styles, but we can go further with that, and Belinda will help us there.”
Mr Bolland said the clothing performance had been hit by unseasonal weather, which had deterred the purchase of summer tops, and linen garments: “I have not found excuses [about the weather]. I just highlight it.”
Alan Stewart, finance director, said M&S had also been hit by stock shortages, which plagued the final quarter of its last financial year. It did not have enough summer jumpers and block printed tops. – (Copyright The Financial Times Ltd 2012)
