Online retailer Ocado has given its share price a jolt by appointing ex-Marks & Spencer chief Sir Stuart Rose as its chairman.
Rose will take up the role of chairman "designate" from 11 March and is expected to be officially installed at Ocado's annual general meeting in May. He replaces Lord Grade, who will retire.
The retailer's share price jumped by almost 7% following the news this morning (22 January).
However, Rose may need to use all of his vast experience, which includes time as CEO and executive chairman of Marks & Spencer, in order to instil confidence in Ocado's long-term business prospects. The retailer faces growing competition from the UK's biggest grocers moving online, and is reliant on Waitrose for its food supply.
"I have been very impressed at the impact and progress Ocado has made to date," said Rose. "As retail goes through a fundamental shift into the digital world, I believe Ocado's model and the high standards of customer service it provides will see it emerge as a powerful online player."
Ocado Group plc
Appointment of New Chairman and Director Resignation
Ocado Group plc ("the Company") announces that the Board has today appointed Sir Stuart Rose as an independent Non-Executive Director and Chairman Designate with effect from 11 March 2013. Sir Stuart will become Chairman following the Company's Annual General Meeting on 10 May 2013. Lord Grade will retire as a Non-Executive Director and as Chairman on that day.
Tim Steiner, Chief Executive Officer, said:
"Sir Stuart is joining Ocado as we enter a hugely exciting period, with a near doubling of our capacity. We are looking forward to benefiting from his extensive retail experience and counsel.
Lord Grade has been a great asset to the Company during his tenure as Chairman of the Board and personally a great support to me. We are grateful to him for his guidance, insight and expertise over the years and wish him well in his retirement."
Sir Stuart Rose commented:
"I have been very impressed at the impact and progress Ocado has made to date. As retail goes through a fundamental shift into the digital world, I believe Ocado's model and the high standards of customer service it provides will see it emerge as a powerful online player.
I am looking forward to being part of the team."
Lord Grade said:
"After a smooth succession process and having secured a new Chairman my job at Ocado is almost complete. After six exhilarating and eventful years, I am leaving the Company in the best possible hands. Sir Stuart's substantial retail experience and commercial acumen will add significant value. Ocado is one of the most innovative and exciting growth companies in the UK and it has been a privilege to be a part of their story."
Resignation of Director
Separately, the Company announces that Wendy Becker has informed the Board of her decision to stand down as a Non-Executive Director of the Company with immediate effect. Douglas McCallum will be appointed Chairman of the Remuneration Committee in place of Wendy as of that date.
Lord Grade said:
"We are very sorry to lose Wendy but fully understand that she has new extensive responsibilities as Chief Operating Officer at Jack Wills. The Board would like to thank Wendy for her valued contribution to Ocado, and we wish her well for the future."