Marks & Spencer has unveiled a new managing director of food as the retailer says it is ‘overhauling’ its food arm as part of a wider transformation plan.
Stuart Machin will join the company in April, leaving his role as Group CEO of retailers Steinhoff UK, having worked across the sector for over 30 years. Prior to joining Steinhoff, Stuart was CEO of Target Australia for three years and has also worked for competitors ASDA Walmart, Tesco and Sainsbury's.
Marks & Spencer has struggled in the face of a fierce market share battle from German discounters Aldi and Lidl as well as online and big four competition. CEO Steve Rowe said the company needs to “sharpen prices” and “grow market share” going forward.
“We face challenges in our food business and we have lots to do to change, fast. Stuart is an excellent addition to our team. He gets food retailing and he has first class experience of driving change in big food retailers,” Rowe said.
“At M&S we need to sharpen our prices, improve our products, drive profitability and grow market share, Stuart is the right leader to get on and deliver these changes.”
Commenting on his appointment, Machin said: “My heart lies in food retail and I am excited to bring my passion for dynamic,customer-led food retailing to M&S. The business has many reasons to be proud of its Food offer but there are also opportunities and lots to deliver under the transformation plan that Steve has laid out. I am looking forward to joining the team.”
Marks and Spencer saw profits drop by almost two-thirds last year to £176.4 million last year although the chain’s performance in food (-0.8 per cent) was marginally better than in clothing (-3.4 per cent).
In 2016/17 a series of one-off costs also damaged the retailer’s profits, with £156m spent on making changes to its pension scheme, £132m on international store closures, and another £49m invested in changes to its UK store estate. The company lost an additional £44m when M&S Bank was hit by charges related to insurance mis-selling.
In January 2018 the company hired a new marketing director, Sharry Crammon, to help bolster its food business by driving marketing output.
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