Who changes CEO in a global pandemic? - UK RETAIL CEO TRACKER 2021 - Korn Ferry
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Who changes CEO in a global pandemic? UK RETAIL CEO TRACKER 2021
UK RETAIL CEO TRACKER 2021
BY SARAH LIM
The BRC/KPMG reported 2020 as the worst year on record for
Retail, with total retail sales falling by 0.3%, as lockdowns forced
shops around Britain to close. The past 12 months saw many in
the industry fighting for survival, accelerating their transition to
becoming ‘digital’ first, and with several high-profile businesses going
into administration, such as Edinburgh Woollen Mill, Arcadia Group,
Debenhams, TM Lewin, and Laura Ashley.
SARAH LIM
Against this backdrop then, it is The reluctance to change CEO last Managing Director
perhaps unsurprising that the number year reflected a mood among several & Sector Lead,
Retail, EMEA
of CEO changes in UK Retail dropped Chairs of ‘better the devil you know’. Korn Ferry
significantly last year, with only 33 Given the widespread nervousness
Retail CEOs appointed in the whole about future trading, there was a
of 2020. preference among many to avoid
creating any more uncertainty or risk
This represented a drop of 30%
by changing out CEO in the midst of
from the 47 CEOs appointed in
the pandemic, unless no other choice
2019, with more CEOs appointed
was available.
from within their own organisations
(67%) rather than from external
appointments (33%).
FIVE NOTABLE FINDINGS FROM THIS YEAR’S UK RETAIL
CEO TRACKER:
• There were 33 CEO appointments in 2020 with five vacant seats still to
be announced, compared to 47 in 2019—down 30% on the previous year.
• Only eight female CEOs were appointed—down from 11 in 2019. Of these,
only two female CEOs appointed were external appointments, i.e. not
already working for the business she had been recruited for.
• Only two ethnic minority CEOs were appointed in 2020.
• Most appointments (67%) were internal rather than external.
• A record number of first time CEOs were appointed
(generally internal promotions)—64% in 2020, versus 49% in 2019.
3 UK Retail CEO Tracker 2021A NEW PATH TO THE TOP
Over the past few years, we have seen a FUNCTIONAL BACKGROUND OF CEOS
growing shift away from Retail Operations
as the most common route up into the role 9% 15%
BRAND/MARKETING OPERATIONS
of CEO, with more CEOs in more recent
times coming from Commercial, Strategy
and Finance backgrounds. This year was
no exception to this, and notable again
was that many more in either pure-play or 21%
FINANCE
largely online businesses had appointed
CEOs with a prior Strategy background.
Of the CEOs appointed, 11 developed their
34%
formative careers largely through Commercial COMMERCIAL/
or Buying and Merchandising backgrounds: BUYING/ 21%
MERCHANDISING STRATEGY
ANDREW YAXLEY JAMES BAILEY JAN MARCHANT
Tesco Booker Waitrose Tesco F&F
STEVE KNIGHTS ANDREW KEITH MARK SAUNDERS STEVE WILLETT
Lakeland Selfridges Mamas & Papas Holland & Barrett
SARAH WELSH EMMA FOX RALPH TUCKER PHIL BRIGGS
N Brown Group Berry Bros & Rudd The Cotswold The Original
Company Factory Shop
4 UK Retail CEO Tracker 2021Seven came from Strategy backgrounds:
JOHN BOUMPHREY PIPPA WICKS* MURRAY LAMBELL AJAY KAVAN JOAN JOVE JEROME GEOFFROY
Amazon UK John Lewis eBay UK MATCHESFASHION McArthurGlen SAINT-MARC LEFEBVRE
Wilko Yoox Net-A-Porter
Six came from Finance backgrounds:
RACHEL OSBORNE LEANNE CAHILL JOHN EDGAR TOM ATHRON JUSTIN GAVIN PECK
Ted Baker Bravissimo Fenwick Fortnum & Mason HAMPSHIRE The Works
The Foschini Group
including Whistles
Five of those CEOs appointed came from strong Operations backgrounds and
SIMON ROBERTS STEVE CARSON DARCY SUSIE MCCABE HANNAH COLMAN
Sainsbury’s ScS WILLSON-RYMER McArthurGlen Jimmy Choo
Card Factory
three CEOs came from Brand/Marketing backgrounds.
At the close of 2020,
five CEO seats remained
vacant: Hamleys, Lovehoney,
CHIRAG PATEL JAMES STURROCK OLLY RAEBURN Hunter, Dune (with founder
Pentland Brands Tapi Carpets Paperchase
& Floors reinstated as Chair/CEO) and
Matalan (with Chair appointed
as Executive Chair).
*Photo credit: Mark Mackenzie/John Lewis Partnership
5 UK Retail CEO Tracker 2021REASONS FOR CHANGE In the cases of Sainsbury’s, Lakeland, Amazon UK, Bravissimo, eBay UK, Foschini Group, Card Factory, McArthurGlen, Pentland Brands, ScS, The Cotswold Company, The Works and Yoox Net-A-Porter, the CEO change was as a result of planned succession or retirement. In the cases of F&F, Fortnum & Mason and Jimmy Choo the incumbent CEO left to join another company. In the following companies, the change of CEO was the result of restructuring, performance, or other reasons: Holland & Barrett, Berry Bros & Rudd, John Lewis, Mamas & Papas, MATCHESFASHION, N Brown Group, Paperchase, Selfridges, Tapi Carpets & Floors, Ted Baker, Waitrose, and Wilko. 6 UK Retail CEO Tracker 2021
SHORTER CEO TENURES PLAYING IT SAFE IN THE FACE
OF UNCERTAINTY
It is interesting to note that out of the 37 CEO
changes in 2020, in a third of cases, the former The percentage of internal promotions rose this
CEO had been in office for three years or less. year to 67% from 51% last year, with 22 CEOs
These include Hamleys, Holland & Barrett, Dune, (67%) appointed from within, versus 11 external
eBay, Lovehoney, Mamas & Papas, Paperchase, appointments (33%). Over the last 12 months,
Selfridges, Ted Baker, The Original Factory boards took the decision more often than not that
Shop and Whistles. While in some instances they would rather train a successor who is already
this was a result of planned succession or a known quantity and promote from within, rather
internal promotion, for several others this was than take a risk on a CEO from outside, thereby
indicative of business distress, board dissent risking tissue rejection or long learning curves
or dissatisfaction with leadership. with an external CEO candidate. Korn Ferry
saw a marked shift away from external CEO
search activity to a significant focus on support
OWNERSHIP STRUCTURE with internal succession or executive-to-CEO
Of the companies who changed CEO last year, development programmes during this period.
49% were family or privately owned companies, This shift in behaviour mirrored market activity at
12 (36%) were listed (publicly quoted) companies, the time of the 2009 financial crash and is highly
or divisions of publicly quoted companies indicative of sector stress or uncertainty.
and five (15%) were private equity backed.
There was a marked increase in the number
of ‘first time CEOs’ in 2020. 64% (21 out of 33)
of the CEOs appointed during the year were
first‑time CEOs, versus 49% in 2019. Of these
FIRST TIME CEO 14 were internal promotions to the role of CEO,
and seven were externally hired.
There were no CEO appointments made from
36% outside the sector during 2020 — all were
NO individuals with prior experience of working
in a brand/retailer previously. This is highly
indicative of economic uncertainty, during which
times, there is a greater prevalence on the part of
boards to recruit individuals into CEO roles with
past sector knowledge, rather than taking a risk
64%
YES
on the unknown, and the inevitable learning curve
of getting up to speed in a new sector.
7 UK Retail CEO Tracker 2021INTERNATIONAL APPOINTMENTS
Of all CEO appointments made during 2020,
GEOFFROY
four were international (non-British): Geoffroy LEFEBVRE
Yoox Net-A-Porter
Lefebvre (internally appointed from Richemont
Group and based in Milan but responsible
for both Yoox, Net‑A‑Porter and other sister
companies, Joan Jove (internally promoted)
appointed as co‑CEO of McArthurGlen,
Susie McCabe (internally promoted co-CEO of JEROME
McArthurGlen), and Jerome Saint-Marc (internally SAINT-MARC
Wilko
promoted at Wilko). Of note also was Paolo
Porta who was appointed as interim CEO at JOAN JOVE
McArthurGlen
Hunter, although unconfirmed to this point as
a permanent appointment.
SUSIE MCCABE
McArthurGlen
DROP IN FEMALE REPRESENTATION AT THE TOP
NINE YEAR TREND OF FEMALE CEO APPOINTMENTS IN UK RETAIL
15 30%
10 20% NUMBER
OF WOMEN
APPOINTED
5 10%
PERCENTAGE
OF TOTAL CEO
0 0% APPOINTMENTS
2012 2013 2014 2015 2016 2017 2018 2019 2020
In 2020, only eight female CEOs were appointed There has been no material improvement in the
and out of these, only Pippa Wicks into the role number of female CEOs appointed over the past
at John Lewis and Sarah Welsh at N Brown Group five years. In 2020, Karen Hubbard stepped down
were external appointments (i.e. not already as CEO of Card Factory and as a result there is
working for the company, in either an executive now no female CEO in a FTSE 350 listed retailer
or non-executive capacity). in the UK.
Over the past five years, the percentage of female Of these eight appointments, except for Emma Fox
CEOs appointed annually has remained fairly and Sarah Welsh, all were ‘step up’ candidates into
static at around 20-23% of the whole; in real terms their first CEO role. And except for Emma Fox at
remaining around 8-11 appointments per year. Berry Bros & Rudd, all were appointed into fashion
or clothing related retailers.
8 UK Retail CEO Tracker 2021THE WOMEN APPOINTED WERE:
• Emma Fox at Berry Bros & Rudd (formerly a
EMMA FOX SUSIE MCCABE SARAH WELSH
non‑executive director for Berry Bros & Rudd.) Berry Bros & Rudd McArthurGlen N Brown Group
• Leanne Cahill at Bravissimo (internal
promotion from CFO).
• Jan Marchant at Tesco F&F (internal
promotion from Creative & Digital Director).
• Hannah Colman at Jimmy Choo (internal
promotion from EMEA President).
LEANNE CAHILL PIPPA WICKS* RACHEL
• Pippa Wicks at John Lewis (external Bravissimo John Lewis OSBORNE
appointment; formerly COO at Co-op). Partnership Ted Baker
• Susie McCabe, co-CEO at McArthurGlen
(internal promotion from Deputy CEO).
• Sarah Welsh, CEO Retail at N Brown
(external appointment; formerly MD at Oasis).
• Rachel Osborne at Ted Baker
(internal promotion from CFO). JAN MARCHANT HANNAH COLMAN
Tesco F&F Jimmy Choo
*Photo credit: Mark Mackenzie/John Lewis Partnership
FEMALE CEOS TO WATCH THIS YEAR:
Of those female CEOs or senior female leaders in Retail today, our view of those with the
potential to have most impact on influencing the industry this year (in no particular order) are:
• Mel Smith – Divisional CEO of Ocado plc & CEO of Ocado.com.
• Jo Whitfield – Retail CEO at Co-op.
• Dame Sharon White – Executive Chair at John Lewis Partnership.
• Tracey Clements – COO at Boots.
• Katie Bickerstaffe – Chief Strategy & Transformation Director at M&S (former CEO of Dixons Carphone).
• Kari Daniels – CEO of Tesco Ireland.
• Pippa Wicks – MD at John Lewis.
9 UK Retail CEO Tracker 2021AJAY KAVAN
ETHNIC MINORITY MATCHESFASHION
APPOINTMENTS STILL LOW
In response to industry demand
for transparency on wider diversity
metrics, this is the first year in which
the CEO Tracker has reported on
ethnic minority CEO appointments.
The data shows little change in the
number of appointments over a CHIRAG PATEL
Pentland Brands
five‑year period (2015–2020).
In 2020, there were only two ethnic
minority CEO appointments—
that of Ajay Kavan as CEO of
MATCHESFASHION, and Chirag
Patel as CEO of Pentland Brands.
Both are newly appointed, first-time
CEOs: Ajay Kavan was recruited
from Amazon, and Chirag Patel an
internal promotion from COO, into
the role of CEO at Pentland Brands.
It is worth noting that there has been
no improvement in the appointment
of ethnic minority CEOs in the past
five years.
5 YEAR TREND: NUMBER OF ETHNIC
MINORITY CEO APPOINTMENTS
5
3 3
4
2 2
3
2
2
0
1
0
2015 2016 2017 2018 2019 2020
10 UK Retail CEO Tracker 2021RETAIL SUB-SECTOR CHANGES
GROCERY
A number of the key seats changed in UK
Grocery during 2020, including Simon Roberts
at Sainsbury’s, Andrew Yaxley at Tesco Booker
and James Bailey at Waitrose. While reported as
ANDREW YAXLEY SIMON ROBERTS
appointed in the previous year’s CEO Tracker, it Tesco Booker Sainsbury’s
should also be noted that 2020 was the year in
which Ken Murphy started as CEO of Tesco Group.
JAMES BAILEY
Waitrose
PUREPLAY/ONLINE
The key CEO appointments in Pureplay/Online
during 2020 were notable given their size/
significance/impact on the sector, namely:
John Boumphrey at Amazon UK (internally
MURRAY LAMBELL JOHN
eBay UK BOUMPHREY promoted); Murray Lambell at eBay UK
Amazon UK
(internally promoted); Geoffrey Lefebvre at
Yoox Net‑A‑Porter (internally appointed) and
Sarah Welsh as Retail CEO at N Brown Group.
It was also noted that Sarah Warby at Lovehoney
stood down during the year, but no replacement
had been announced at the time of writing.
GEOFFREY SARAH WELSH
LEFEBVRE N Brown Group
Yoox Net-A-Porter
11 UK Retail CEO Tracker 2021JOHN EDGAR TOM ATHRON
Fenwick Fortnum & Mason
DEPARTMENT STORES
The UK Department Store sector saw some notable
changes during 2020 with new CEOs at Fenwick
(John Edgar), Fortnum & Mason (Tom Athron),
John Lewis (Pippa Wicks), and Selfridges (Andrew
ANDREW KEITH PIPPA WICKS*
Keith). All of these were external appointments. Selfridges John Lewis
Partnership
Manju Malhotra was also appointed as interim CEO
at Harvey Nichols during the year.
*Photo credit: Mark Mackenzie/John Lewis Partnership
HOME
The Home category saw new CEO
appointments confirmed at Lakeland
(Steve Knights), ScS (Steve Carson),
Tapi Carpets & Floors (James Sturrock),
STEVE KNIGHTS STEVE CARSON JAMES STURROCK
Lakeland ScS Tapi Carpets The Cotswold Company (Ralph Tucker)
& Floors
and Wilko (Jerome Saint-Marc).
RALPH TUCKER JEROME
The Cotswold SAINT-MARC
Company Wilko
DISCOUNT
The value sector saw two key moves in the GAVIN PECK PHIL BRIGGS
The Works The Original
appointments of Gavin Peck at The Works and Factory Shop
Phil Briggs at The Original Factory Shop.
12 UK Retail CEO Tracker 2021LEANNE CAHILL JAN MARCHANT JUSTIN HANNAH COLMAN
Bravissimo Tesco F&F HAMPSHIRE Jimmy Choo
The Foschini Group
including Whistles
FASHION & LUXURY
The most significant number of CEO
appointments per sub-sector were in Fashion
during 2020, with 10 CEO appointments made.
These were at Bravissimo (Leanne Cahill),
RACHEL CHIRAG PATEL SUSIE MCCABE
Tesco F&F (Jan Marchant), The Foschini OSBORNE Pentland Brands McArthurGlen
Ted Baker
Group including Whistles (Justin Hampshire),
Jimmy Choo (Hannah Colman), McArthurGlen
(Susie McCabe), Pentland Brands (Chirag Patel)
and Ted Baker (Rachel Osborne).
SPECIALITY/OTHER RETAIL
The other CEO changes across the industry
were made at Berry Bros & Rudd (Emma Fox),
Card Factory (Darcy Willson-Rymer), Holland
& Barrett (Steve Willett), Mamas & Papas
EMMA FOX DARCY STEVE WILLETT
Berry Bros & Rudd WILLSON-RYMER Holland & Barrett (Mark Saunders) and Paperchase (Olly Raeburn).
Card Factory
RETAIL SUB‑SECTOR CHANGES
10%
OLLY RAEBURN MARK SAUNDERS
DEPARTMENT STORE
Paperchase Mamas & Papas
36%
SPECIALITY
36%
FASHION,
LUXURY &
APPAREL
10%
PUREPLAY
8%
GROCERY
13 UK Retail CEO Tracker 2021SUMMARY OF 2020 FINDINGS THE MACRO OUTLOOK
FOR RETAIL IN 2021
2020 was the most difficult year in living memory
for retailers, with many going into administration Clearly the outlook for the first quarter of 2021
and the global pandemic accelerating digital will remain bleak for many across the retail sector
transformation of the sector in record time. given current lockdown constraints. That said,
For many it was a year to focus on core business, many are already planning for a return to growth
remain solvent and simply weather the storm. from March/Q2 onward. The Deloitte forecast
There were far fewer CEO changes across the for UK GDP growth in 2021 predicts strong
year than in much of the past ten years. growth during Q3 of this year:
QUARTERLY (QoQ) ANNUAL
2020 2021 2020 2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YoY YoY
-2.5% -19.8% 15.5% -2.5% -3.5% 2.5% 9.0% 1.5% -11.3% 2.6%
Forecast for UK GDP Growth, 2021 courtesy of Deloitte, January 2021
14 UK Retail CEO Tracker 2021KORN FERRY PREDICTIONS
FOR THE YEAR AHEAD
RETAIL SECTOR IMPROVEMENT IS LIKELY IMPACT OF
LIKELY TO COME AS A RESULT OF: MACRO‑ECONOMIC FACTORS ON
CEO APPOINTMENTS DURING 2021
• Brexit is done. The flipside of another
two‑month lockdown means a reduction We predict a slow start to new CEO
in cross border travel and transit—thereby appointments during the first two months of
allowing time for the teething pains of 2021. But on the assumption that lockdown lifts
Brexit transition to be addressed. By the in March with the UK vaccination programme
time lockdown lifts and international travel well underway, business confidence is likely
resumes during Q2/Q3, the new processes to rebound quickly during Q2 and throughout
put in place should have been well tested, the rest of the year. From a leadership change
thereby minimising future disruption. perspective, from February/March 2021 boards
are likely to accelerate the process of forward
• The UK’s rapid response vaccination for
planning for board and CEO changes from
COVID-19 will provide a likely two-month
Q2 onward.
head start economically, in comparison
to other countries, thereby providing the We anticipate a marked increase in CEO
kickstart required for the UK economy. change in 2021 from the second half of the year,
driven by:
• Britain will be ‘open for business’ with
government stimulus for overseas inward • Pent up demand, as CEO changes from 2020
investment, increased M&A activity and an which were previously put ‘on hold’ as a result
increase in UK Initial Public Offerings (IPOs) of COVID-19, are reinstated.
(public company listings) highly likely.
• ‘Usual’ CEO change as a result of
• UK Consumer demand will pick up at pace, planned succession.
with a return to shopping, travel, leisure
• New market opportunities as a result
activities and dining out.
of increased IPO and M&A activity.
*FOOTNOTE TO THIS REPORT:
It should be noted that the following CEOs were reported in the 2020 CEO Tracker (published in January 2020)
as their appointments were announced in 2019 but did not start in role until 2020. These include:
• Dame Sharon White – Executive Chair at John Lewis Partnership (announced 2019, started in role
January 2020)
• Richard Price – CEO M&S Clothing & Home (announced 2019, started in role summer 2020)
• Nick Devlin – CEO Naked Wines (announced 2019, started in role January 2020)
• Nigel Oddy – CEO New Look (announced 2019; started in role January 2020)
• Ken Murphy – CEO Tesco (announced 2019; started in role June 2020)
15 UK Retail CEO Tracker 2021NEW CEOS
ANNOUNCED
AS APPOINTED
DURING 2020 JOHN
BOUMPHREY
EMMA FOX
Berry Bros & Rudd
Amazon UK
ANDREW YAXLEY LEANNE CAHILL DARCY MURRAY LAMBELL JAN MARCHANT JOHN EDGAR
Tesco Booker Bravissimo WILLSON-RYMER eBay UK Tesco F&F Fenwick
Card Factory
TOM ATHRON JUSTIN STEVE WILLETT HANNAH COLMAN PIPPA WICKS* STEVE KNIGHTS
Fortnum & Mason HAMPSHIRE Holland & Barrett Jimmy Choo John Lewis Lakeland
The Foschini Group Partnership
including Whistles
MARK SAUNDERS AJAY KAVAN SUSIE MCCABE JOAN JOVE SARAH WELSH OLLY RAEBURN
Mamas & Papas MATCHESFASHION McArthur Glen McArthurGlen N Brown Group Paperchase
CHIRAG PATEL SIMON ROBERTS STEVE CARSON ANDREW KEITH JAMES STURROCK RACHEL
Pentland Brands Sainsbury’s ScS Selfridges Tapi Carpets OSBORNE
& Floors Ted Baker
RALPH TUCKER PHIL BRIGGS GAVIN PECK JAMES BAILEY JEROME GEOFFROY
The Cotswold The Original The Works Waitrose SAINT-MARC LEFEBVRE
Company Factory Shop Wilko Yoox Net-A-Porter
*Photo credit: Mark Mackenzie/John Lewis PartnershipAbout Korn Ferry
Korn Ferry is a global organisational consulting firm.
We work with our clients to design optimal organisation
structures, roles, and responsibilities. We help them hire
the right people and advise them on how to reward and
motivate their workforce while developing professionals
as they navigate and advance their careers.
Visit kornferry.com for more information.
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