One of the biggest challenges in retail faces Steve Rowe who will assume the top job at High Street stalwart Marks and Spencer (MKS) after its chief executive Marc Bolland announced his departure today. Mr Bolland leaves in April after which Mr Rowe, who now heads the general merchandise division, will be on the hook for turning around the fortunes of M&S's clothing and homeware division. Sales there fell a disappointing 5.8 per cent, on a like-for-like basis, during the third quarter. Mr Bolland said his resignation was not related to the group’s poor performance over the Christmas period.
While it seems M&S clothes aren’t popular with customers, the group has done well to try to keep up with the demand for online shopping. During the third quarter online sales rose 21 per cent, while its new loyalty scheme Sparks has recorded 3.3m new members since its launch 11 weeks ago. It seems current head of multichannel operations Laura Wade-Gery was not the ‘heir apparent’ to Mr Bolland the broadsheet media had dubbed her. It’s Peel Hunt analyst John Stevenson’s view that Ms Wade-Gery is “not a natural trader” like Mr Rowe, who has been credited for previously steering the group’s food division to its current levels of success. In the third quarter food sales grew 0.4 per cent on a like-for-like basis against the wider deflationary backdrop.