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New bosses were hired at Marks & Spencer and ITV today in moves expected to bring huge changes to the high street and television.
M&S said it had appointed Morrisons' head Marc Bolland as its next chief executive. ITV unveiled its new chairman as former Tory MP and Asda boss Archie Norman.
The moves will affect millions of shoppers and viewers with radical overhauls expected for two of Britain's best known companies, both of which have lost their way in recent years. M&S and ITV shares rose on the news.
Commentators said the arrival of Mr Bolland, 50, is likely to usher in “real change” at the retailer which has been run by Sir Stuart Rose since 2004. Sir Stuart was initially credited with reviving Marks but it has come under siege in the recession from discount retailers such as Primark as well as rival Waitrose, with profits slumping last year.
Tim Danaher, editor of Retail Week magazine, said the surprise appointment reflected the City's impatience for a new broom at M & S, where profits peaked as long ago as 1998. He said: “Bolland was phenomenally radical at Morrisons, it was very dramatic what he did there. What will have impressed the board is his ability to take a company with masses of heritage and baggage and turn it into a modern business, while respecting the strength of the brand and what it stands for. M&S has lost its focus and the sparkle it had when Rose started.”
Sir Stuart said: “I am delighted that Marc is to be next chief executive. He brings a wealth of consumer marketing experience and has made a great success of his time at Morrisons. We very much look forward to welcoming him and working together.” Sir Stuart will stay on as part-time chairman before retiring in July 2011.
Mr Bolland said: “M&S is one of the world's great brands and I am very pleased to be given the opportunity to lead the company forward.”
The surprise appointment of Mr Norman at ITV ends a painful search for a successor to Michael Grade. Landing the 55-year-old former shadow environment secretary will be seen as a major coup for ITV, which had been turned down by a number of high profile business figures.
ITV has been badly hit by the worst advertising downturn in living memory and last year lost more than £2.5 billion. City commentators said the appointment would be well received by shareholders but will mean a culture change at the broadcaster.
Mr Norman, who will take up the post in January, said: “It is an irresistible challenge.” He will be paid a package worth £300,000 a year and has also been allocated 1.2 million ITV shares at current prices and will receive 400,000 of these each year for the next three years.
