Management review underway at Marks & Spencer

A major management review is underway at Marks & Spencer with current chief executive, Stuart Rose, to take over as chairman from 1 June.

The review will also see finance director, Ian Dyson, become director of operations. He will take on extra responsibilities, including managing the group’s store network. An analyst at Bernstein said that this is a sign that he could be earmarked to succeed Rose at a later date.

Other executive changes will see Kate Bostock and Steven Esom promoted to the board. Ms Bostock takes responsibility for clothing, excluding the ‘per una‘ range with designer George Davies. Mr Esom remains in charge of food. Former chief executive of hotels group Hilton, David Michels, will become deputy chairman.

Britain’s biggest clothing retailer said Mr Rose has staged one of British retail’s most notable turnarounds since he joined M&S 4 years ago and will stay with the company until July 2011.

Earlier this year, the retailer posted its worst quarter in over 2 years. UK like-for-like sales fell 2.2% in the last quarter of last year. Sales of clothes and homeware fell 3.2%, while food sales dropped 1.5%.

Following the announcement, Stuart Rose said in taking on the role of executive chairman, my task will be to guide the business through the next stage of growth.

Nick Bubb, an analyst at Pali International, said there was no obvious successor. This allows Stuart to work through the current downturn, I don’t suppose he’d want to leave on a low note, added Mr Bubb.

Stuart Rose fought off a bid approach from retail tycoon Philip Green in 2004 and then oversaw a doubling in its share price as it recaptured ground lost to rivals such as Next.

At 10.50 am today, shares in M&S were down 0.7% at 375.25 pence.

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