After three years at Morrisons as chief executive, Marc Bolland will replace Sir Stuart Rose in the top job at Marks & Spencer. The news of his move first set Morrisons’ market share back with £400m.
But luckily, figures stabilised and Bolland can stand proud as out going head of a grocer that has increased its customer numbers by 20 in just two years.
In retail anything can happen. Here today, gone tomorrow. Chantél du Plooy investigates what retail success looks like and how to achieve it.
A Retail Hero
Marc Bolland joined Morrisons in 2006 at an extremely demanding time. It was during the period when the grocer took over Safeway and needed to merge the two brands in a state of flux.
During the last three years the former Heineken Chief gave 410 Morrisons stores a complete makeover. He brought in fresh food, pasta and bread, improved over 12,000 products and re launched many of them.
Bolland promoted the grocer’s focus on corporate social responsibility (CSR) and as a result the company has won numerous “green” awards.
Over the past couple of years, the 50 year old Dutchman has portrayed something of his work ethic through the highlighted in interviews he gave.
In one on ones with Management Today, Business Times Online and The Guardian, Bolland expressed his passion for freshness, food made in store and providing meals at great prices. He did this through showing the journalists his fresh pasties and vegetables in store.
Bolland is also a great leader who encourages and motivates staff through visiting different stores and expressing his gratitude towards their hard work.
The former Sunday Times Business Person of the Year believes in his products and loves what he does, that is the key.
“I have really enjoyed my time at Morrisons and have had a terrific three years,” he commented.
Although the retail hero is leaving Morrisons, he is doing so with a bang! The grocer has unveiled a 9 increase in total sales and 4.3 improvement in like for like sales in their quarterly results. The company also boasts with a customer total of 10.8m per week.
Bolland spent 18 years at the beer giant Heineken and after such successes at Morrisons in merely three years, it is a shame to see him move on so quickly.
Justifying his upcoming shift to M& S, Bolland commented that it was an opportunity which he couldn’t miss out on.
It is apparent that this Flying Dutchman is driven by a challenge and M& S will provide him with stacks to get his teeth into.
As a high profile retailer, the M& S brand is classified as one of the top retail brands in the UK. Not only is the company known for its quality food items, but also its celebrated clothing line; something Bolland has no experience in.
Where the challenge at Morrisons was to improve an unknown brand, Bolland will now be expected to maintain and expand an already fantastic brand.
But his time at Morrisons isn’t over yet and he commented to being committed to Morrisons up to “the last minute”. That is the kind of man Marc Bolland is.
Brand Power
Due to the turbulent economy today and the UK’s 2.46m jobless total, consumer confidence has taken a knock. Lower sales – equal fewer production and manufacturing, which in turn contributes to job losses. The vicious circle of a recession.
The last year has seen the closure of stores from some high profile retail brands, such as; around 850 Woolworths stores, 570 Morgan stores and 100 Adams stores.
The majority of households spend their money on the bare minimum. Fast moving consumer goods (FMCG) such as basic food items, toiletries and essential electrical appliances might not experience the downturn as badly as luxury items would.
Now more than ever, retail brands need to stand out from the rest through great prices for excellent items underpinned by good customer service.
According to David Muir, CEO at WPP and co author of The Business of Brands, brand power is extremely important. They give a business value through enjoying stronger revenue growth, providing more sustainable gross margins and exhibiting less “systematic” business risks. These three benefits results in bigger, more stable cash flows and create substantial shareholder value.
With Christmas and New Year around the corner, retail is starting to show signs of improvement.
According to the Office of National Statistics (ONS), sales in October increased with 3.4 compared to last year.
Does this mean recovery is looming?
Unfortunately, not yet. The Independent reported that several analysts believe 2010 will still be a tricky year for retail.
Richard Hyman, a strategic retail adviser to Deloitte told the newspaper: “The consumer faces a number of headwinds in 2010, including rising unemployment, higher taxes and larger National Insurance contributions.
“As a result of these factors, we expect retail sales to take a slight fall of 1.5 per cent next year.”
Mark Bolland’s successes with Morrisons illustrate how one man can perk up an entire brand, but not the economy – fingers crossed that Bolland’s success will follow him to M& S.
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