Marks & Spencer has ousted Anthony Thompson, its retail director, as part of a management reshuffle that lines up the runners and riders to succeed Stuart Rose, the chief executive.

In January it emerged that Mr Thompson, seen by some analysts as a prospective successor to Mr Rose, 58, had spoken with headhunters about leaving, after having become frustrated with his prospects for the top job.

Mr Rose said that Mr Thompson had given M&S “good service”, but added: “I had to make a decision on who is best-equipped and qualified to run this business.”

He insisted that the reshuffle was about getting the right team in place to drive the next phase of M&S’s expansion and that no decision had been made on who might succeed him.

BACKGROUND

• M&S bows to pressure over top bonuses

• Marks & Spencer chief reaps bonus benefit

• How the M&S boss turned green

• Marks & Spencer ousts retail director in broad reshuffle

• Rose’s turnaround plan is paying off for M&S

M&S comment: Quite an achievement

Stuart Rose has achieved the biggest high street turnaround in years

Related Internet Links

• Marks & Spencer company information

• Marks & Spencer share price chart

• Marks & Spencer forecast

Mr Rose is credited with turning around the company that was facing a takeover by Sir Philip Green, the owner of Bhs, when he joined. He said: “A few years ago, without being immodest, it was Stuart Rose; now it is a team effort and I hope I am doing my duty and bringing talent through.”

However, he insisted: “I’m not going anywhere,” adding that he would stay on until at least 2009, the end of a five-year period that he committed to when he joined M&S.

The company’s shares rose 2.2 per cent to 728½p yesterday as the market welcomed the appointment of Carl Leaver, chief executive of De Vere Group, the hotel and leisure firm, as director of M&S’s international business. He will replace Richard Wolff, who is to retire. Steven Esom quit as chief executive of Waitrose this week to become M&S’s director of food.

Analysts said that the appointments reflected the important roles these two divisions were expected to play in M&S’s future growth strategy.

The importance of M&S’s international business is also underlined by Mr Rose’s decision to directly manage that division, which previously was handled at board level by Ian Dyson, the finance director.

Kate Bostock, M&S’s director of women’s and girl’s clothing, has been promoted to oversee the retailer’s important lingerie division as well.

Analysts said that Ms Bostock, 49, was in a strong position to become M&S’s first female chief executive.

Guy Farrant, M&S’s director of food, is moving sideways, to become director of retail and outlets, replacing Mr Thompson. Matt Hudson, director of lingerie, will become director of trading for women’s and girl’s clothing and lingerie, reporting to Ms Bostock.

Analysts said that the issue of succession was “critical”, but that it was not clear who would be the obvious replacement for Mr Rose.

Tony Shiret, an analyst at Credit Suisse, said that Mr Esom was a capable retailer, but it was much more likely that the next chief executive of M&S would emerge from the clothing side of the business. Some analysts believed that Mr Farrant would be the candidate favoured by Mr Rose, but he is seen to be more of an operational expert than a business leader.

M&S is due to report its preliminary results on May 22.

M&S talent

M&S executives in the running for top job

Kate Bostock, 50, director of women’s and girl’s wear, adds the highly important lingerie division to her remit. Built George into a top brand for Asda. Strong fashion sense, but strategic talent unknown
Guy Farrant, 45, became director of food after Justin King left for J Sainsbury. Strong operational skills. New role heading store operations will test ability outside food
Andrew Skinner, 40, was promoted from head of menswear to be director of supply chain in January
Steven Esom, 46, joins from Waitrose to become director of food on June 1. Quit as Waitrose managing director, having overseen much growth, after failing to win parent group’s chairmanship
Carl Leaver, 39, was chief executive of De Vere, the hotels group, until it was sold last year. Seen as a dynamic operator

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