Marks & Spencer share price up as new boss reshuffles top team
Shares in Marks & Spencer (LON:MKS) closed higher in yesterday’s session, outperforming the broader London market, as the retailer’s new boss unveiled a shake-up of the group’s management team. The move comes just a fortnight before Steve Rowe, who took the reins at M&S barely a month ago, is set to tell investors how he intends to revive the retailer’s fortunes.
Marks & Spencer’s share price surged 1.48 percent to close at 424.20p yesterday, outperforming the benchmark FTSE 100 index which shed 58.30 points to close 0.95 percent lower at 6,104.19. The group’s shares have lost nearly a quarter of their value over the past year, and are down some six percent in the year-to-date.
Marks & Spencer unveiled a series of senior changes yesterday as it looks to simplify its management structure. The move is intended to drive speedier decision making and move the business closer to its customers. Under the changes, Patrick Bousquet-Chavanne has been stripped of responsibility for the international business, which will instead be handled by Rowe. Bousquet-Chavanne, who retains responsibility for marketing, has instead been put in charge of the online operation.
In another change, finance officer Helen Weir has been handed additional responsibility for strategy implementation on the M&S executive director board. The retailer is further establishing a new operating committee, accountable for the day-to-day running of the business as well as for the development and execution of strategy.
“On my first day as CEO, I committed to putting M&S customers at the heart of everything we do,” Rowe said in the statement. “These changes reflect this; a simpler management structure with a smaller, more focused team running M&S will lead to more efficient decision making and move us closer to our customers.”
The shake-up comes ahead of M&S’ final results on May 25. The Telegraph noted in its coverage of the news that Rowe is also expected to unveil his restructuring plan to boost the retailer’s long-struggling clothing department.
As of 08:06 BST, Friday, 13 May, Marks and Spencer Group Plc share price is 424.20p.