Britain's M&S Opts For Continuity As CEO Checks Out

Steve Rowe will step down as chief executive of Marks & Spencer in May after six years in the job, with the British retailer opting for continuity by choosing two of his senior lieutenants as his successor.

Rowe, who joined M&S at the age of 15 before rising through the ranks, will step down after the food and clothing retailer reports annual results on May 25.

His tenure in one of the most high-profile jobs in British business has been turbulent as he, along with chairman Archie Norman, has sought to transform M&S by improving the quality and value of its clothing and food products, overhauling its store estate and investing heavily in technology and e-commerce, including a venture with Ocado Group Plc that took M&S food online for the first time.

Having steered the retailer through the pandemic he exits as hopes are rising that one of Britain's most elusive turnarounds could finally materialise after more than a decade of false dawns.

M&S shares, which closed on Thursday at 159 pence, were trading at nearly four pounds when Rowe became CEO in April 2016.

The group said current joint chief operating officers, Stuart Machin and Katie Bickerstaffe, will take over Rowe's responsibilities in an unconventional structure.

Machin will become CEO and will take on responsibility for day-to-day leadership of the business and the executive committee.

He will keep oversight of his current responsibilities, which include the leadership of M&S's food business, as well as operations, property, store development and technology, and will take on responsibility for human resources and corporate communications.

Bickerstaffe will become co-CEO with a focus on driving M&S's strategy of selling across multiple platforms, while retaining her existing responsibilities for clothing & home, MS2, international and financial services.

Both Machin and Bickerstaffe will join M&S's PLC board on May 25.

Machin, Bickerstaffe and Chief Financial Officer Eoin Tonge had been the favourites to succeed Rowe.

Tonge has been promoted to chief strategy & finance officer, playing an enhanced role in leading the future development of the business.

"The board's view is that under the current team, the business has made remarkable progress and that continuity of strategy and leadership is advantageous," M&S said.

However, some observers were left baffled by the new structure, saying it contradicted M&S's stated desire for a leaner, simpler business.

Rowe will cease being an M&S employee after its annual shareholders' meeting on July 5 but remain an adviser for up to a year.