Morrisons finance chief could move to M&S
May 7, 2010
As of yesterday, rumours that Richard Pennycook, Morrisons’ finance chief, is looking to team up with Marks & Spencer yet again began to fly. After repeatedly refusing to cast aside the possibility of his move to the UK retail giant, the speculation has grown with Ian Dyson, formerly with Marks & Spencer, resigning to become top boss at Punch Taverns.
Pennycook announced dismal figures for Morrisons this quarter, with just 0.8 per cent in sales growth. When asked about the newly available position at M&S, Mr Pennycook said he would not rule anything out. Morrisons expects to weather harsh trading conditions for the remainder of the fiscal year.
First quarter results at Morrisons came in at under half of the consensus analyst forecast. The firm is warning that a hard year lies ahead financially for the retailer. City firm Oriel Securities analyst Jonathan Pritchard said that Morrisons was beginning to falter in its staggering lead in retail over the past three years. According to the analyst, the firm is just barely ahead of its competition, and its hold on the market is decreasing.
Kantar Wor Idpanel, a research agency, said that Morrisons holdings in the UK grocery market increased 11.8 per cent over 12 weeks till 18 April. However, analysts have predicted that Morrisons’s market share growths will decline across the board in the coming year.
Mr Pritchard indicated that news circulating that Richard Pennycook may leave would only serve to overhang shares even further. Morrisons’s former chief executive, Marc Bolland, left the company not long ago to take over the role of head boss at M&S. Ian Dyson resigned a day later.
Related Posts
Comments
Advertisement
