Marks & Spencer Appoints AWAS' Alan Stewart as CFO

by Simon Zekaria - 03/08/2010

"U.K. clothing, homeware and food retailer Marks and Spencer Group PLC (MAKSY) said Tuesday it has appointed Alan Stewart as chief financial officer. "

Stewart, 50, who is currently CFO at aircraft leasing company AWAS, will start at the retailer by the end of October. Previously, he was finance director at stationery, book and newspaper retailer WHSmith PLC (SMWH.LN).

Stewart replaces Ian Dyson, 47, who is joining U.K. pub group Punch Taverns PLC (PUB.LN) as chief executive.

Dyson joined M&S as finance director in June 2005, but failed to get the chief executive's role, which instead went to Marc Bolland, formerly of William Morrison Supermarkets PLC (MRW.LN).

Investec Securities Analyst David Jeary said it's a good appointment and positive news. Jeary said Stewart also has experience in the leisure industry, which could be useful to M&S going forward.

Execution Noble analysts added that Stewart has a reputation of expertise in industrial cost control, having implemented restructuring programs at the U.K. operations of Thomas Cook Group PLC (TCG.LN) and WHSmith. They said this strategic focus could benefit M&S.

"Known as a 'cost-cutting supremo' even prior to his time at WHSmith, Stewart is a sharp character who might prove to be the gross margin and cash-conscious foil to [Chief Executive Officer] Bolland's marketing prowess," the analysts said. "[He] could have both the consumer-facing and cash-focused experience to help steer the M&S ship."

At 1208 GMT, M&S shares were down 0.4% at 358 pence, in a lower London market.

Last month, M&S said it made a good start to 2010 reporting a 3.6% rise in first-quarter sales, but it remains cautious about outlook.

The group, often viewed as a bellwether for U.K. consumer sentiment, said sales from stores open at least a year rose 3.6% in the 13 weeks to July 3 from a year earlier. This compares with a 5.1% rise in the fourth quarter last year and a 0.8% rise in the third quarter.

At the end of May M&S posted higher annual profits and sales, including the first rise in food sales since 2007.

However, retailers are concerned that spending cuts, combined with a forthcoming rise in tax on sales of goods to 20% from 17.5% Jan. 4 next year, will hit consumer sentiment.

Economists also warn that factors including inflationary pressure and concerns about job security could keep consumer spending muted in the coming months.

Bolland, who formally took over the reins as ceo from Sir Stuart Rose in July, will deliver his strategic plan at the interim results in November.

Analysts say Bolland will be charged with updating the group's clothing line, step up its food operations, expand its international business and deal with a pension fund deficit.

-By Simon Zekaria, Dow Jones Newswires; +44 207 842 9410; simon.zekaria@dowjones.com

More Details: http://online.wsj.com/article/BT-CO-20100803-709186.html