Mr Price shares hit on news of Bird’s pullout
Chief executive’s departure has been anticipated by management
CLOTHING, home decor and furniture retailer Mr Price yesterday fell more than 3 percent on the JSE after the group announced that its long serving chief executive Stuart Bird would step down from the position this year.
The share price closed 2.47 percent lower on the JSE at R224.46 yesterday.
The group said the departure of Bird from the clothing, home decor and furniture retailer had been anticipated by the group’s board of directors.
Mr Price faces a highly competitive retail environment aggravated by consumers under pressure with South Africa in a recession.
However, retail figures this week showed that South Africa may exit the technical recession in the third quarter after Statistics SA reported a 2.5 percent growth in retail sales for August, following an upward 1.4 percent recorded in July and beating market expectations of a 0.3 percent rise.
In the group’s trading update for the four months to end August, Mr Price reported a 7.4 percent increase in retail sales and other income to R7.4 billion. Total retail sales, including sales to franchisees, of R6.9bn were 6.5 percent higher than last year.
Bird has been steering the ship for eight years after he took over the reins from Alastair McArthur in 2010.
“Shareholders are advised that Stuart Bird, who has been chief executive of the group since August 2010 and an executive director since September 2006, will be retiring as chief executive on December 31 and as an executive director at the end of March 2019, shortly before turning 60, as has been anticipated by the group’s board of directors,” the group said. Mr Price was quick to announce his successor in Mark Blair, the current chief financial officer (CFO), effective from January 1.
The group said it appointed Blair after a thorough succession process.
Blair joined the group as an executive director in 2006 and has held the office of CFO since 2007.
In paying tribute to the departing Bird, group chairperson Nigel Payne said Bird’s 25-year career with Mr Price, and particularly the past decade under his leadership as chief executive, had seen the group grow into one of the top performing retailers in Southern Africa, with a market capitalisation of more than R60bn. “Over the eight years of Stuart’s leadership, earnings have grown at a compound rate of 18.8 percent. Stuart’s success has been as a consequence of focusing on our customers and ensuring we provide the products that appeal to them. He has also taken key steps to create the infrastructure and capabilities upon which our future success will be built.