UK Edition
Exit of M&S finance chief adds to retailer’s woes
Marks & Spencer has lost its finance chief after just 14 months in the job, raising new questions over its cost-cutting efforts and plans to break into the competitive online grocery market.
Humphrey Singer “has decided to leave the business” the company said yesterday. He will remain with the retailer while it finds a replacement. His exit will add to investor concern around M&S following its relegation from the FTSE 100 index this month. In July clothing chief Jill McDonald stepped down after two years, after being blamed for mistakes including a promotion to sell more jeans that left the company without enough stock.
Chief executive Steve Rowe said Mr Singer had “helped to establish the foundations of our transformation with a stronger balance sheet” and overseen “a much keener focus on reducing our cost base”. Shares in M&S have fallen by almost a third over the last year despite the high street stalwart ploughing ahead with a turnaround plan.
It is working towards a target of 110 store closures but is warning more could be on the cards. M&S wants to cut £350m from its cost base within two years.
It also aims to spark growth with an grocery delivery joint venture with Ocado. A £750m deal was announced in February in what Mr Rowe called his “biggest and boldest moment so far”.
Ocado’s decision to part company with Waitrose after 20 years is at the centre of a bitter legal row between the online grocery specialist and co-founder Jonathan Faiman that was revealed late last week. He is facing allegations of “unlawfully obtain[ing]” information from Ocado to help launch a rival business. Mr Faiman, who denies the claims, has accused fellow founder Tim Steiner of trying to sabotage his plans to strike out on his own.
Mr Rowe said: “[Mr Singer] was a critical part of the team which guided M&S through the deal to create our joint venture with Ocado.”
Mr Singer said he felt “privileged” to have worked for M&S: “The transformation taking place is of a scale, depth and pace not seen before at the company. After eighteen months of working with Steve to lead the transformation strategy and rebuild the finance function I have decided that now is the right time to move on.”