Steven Esom's shock defection from Waitrose to M&S sent the rumour mills into overdrive this week, with many questioning the motives behind his move.
His new role as director of food at M&S, is not an obvious move. He leaves the helm of a highly successful retailer - a job which carries a lot of cachet - for a much more focused role at a resurgent M&S.
But Esom may have his eye on a larger prize - the role of chief executive. Stuart Rose steps down in 2009 - and speculation is mounting as to his likely successor.
Esom is not the only name in the frame. There's outgoing director of food, Guy Farrant, who has been given the role of director of retail and outlets in the management reshuffle; Kate Bostock, director of womenswear and girlswear; Andrew Skinner, head of menswear; and Carl Leaver, director of M&S's international business. But he has to be a contender, especially now Terry Green is out of contention.
Esom has always set his sights high. When he missed out on the top job at John Lewis Partnership four months ago, many predicted he would be dusting down his CV. "Steven was his own man," says a company insider. "He's not a Waitrose lifer. As soon as he lost out on the top job to a younger man (Esom is 46, Charlie Mayfield is 39) he was always likely to leave."
The move is not without other potential rewards. His remuneration is likely to be substantially higher at M&S than at Waitrose, where his salary was £750,000 including pension. "Esom will now benefit from a significant bonus scheme and the option of a substantial number of shares - a perk that he did not have at Waitrose," says Seymour Pierce analyst Richard Ratner. "I would imagine his package will now be seven figures," adds another source.
Esom's appointment is clearly a coup for M&S chief executive Stuart Rose.
But the biggest plus appears to be the Waitrose man's impressive track record for opening stores. Since he was appointed MD five years ago, Esom has increased the number of Waitrose stores from 128 to 183. He has bought a large number of stores from Morrisons and Safeway and successfully opened a string of new-build sites.
Having succeeded in taking the brand into the north of England and Scotland, he revealed plans last month to take the total number of stores to just under 400 across the UK.
Such skills will come in handy at M&S, where Rose has admitted to difficulties in buying land and developing stores. Rose recently announced plans to triple the number of Simply Food convenience outlets from 190 to 600, as well as to take its new M&S Kitchen offer national. Although Esom's lack of experience in convenience could be an issue, M&S's food business is remarkably similar in size and premium positioning.
They each command just under 4% of the grocery market, with Waitrose sales reaching £3.7bn in its latest full-year results and M&S expected to hit £3.9bn.
They're both green advocates. And Esom has been heavily involved in the implementation of a range of green initiatives for stores this year - including a 27% reduction in carbon emissions at its stores. Rose, meanwhile, has been overseeing M&S's Plan A.
Esom's online expertise, having helped to launch Waitrose Deliver, and working with Ocado, is one asset. Rose has yet to rule out an online food service and the appointment could kickstart any plans. The missing link in Esom's CV is clothing. But it will be two years before Rose goes - plenty of time to prove his worth. n
His new role as director of food at M&S, is not an obvious move. He leaves the helm of a highly successful retailer - a job which carries a lot of cachet - for a much more focused role at a resurgent M&S.
But Esom may have his eye on a larger prize - the role of chief executive. Stuart Rose steps down in 2009 - and speculation is mounting as to his likely successor.
Esom is not the only name in the frame. There's outgoing director of food, Guy Farrant, who has been given the role of director of retail and outlets in the management reshuffle; Kate Bostock, director of womenswear and girlswear; Andrew Skinner, head of menswear; and Carl Leaver, director of M&S's international business. But he has to be a contender, especially now Terry Green is out of contention.
Esom has always set his sights high. When he missed out on the top job at John Lewis Partnership four months ago, many predicted he would be dusting down his CV. "Steven was his own man," says a company insider. "He's not a Waitrose lifer. As soon as he lost out on the top job to a younger man (Esom is 46, Charlie Mayfield is 39) he was always likely to leave."
The move is not without other potential rewards. His remuneration is likely to be substantially higher at M&S than at Waitrose, where his salary was £750,000 including pension. "Esom will now benefit from a significant bonus scheme and the option of a substantial number of shares - a perk that he did not have at Waitrose," says Seymour Pierce analyst Richard Ratner. "I would imagine his package will now be seven figures," adds another source.
Esom's appointment is clearly a coup for M&S chief executive Stuart Rose.
But the biggest plus appears to be the Waitrose man's impressive track record for opening stores. Since he was appointed MD five years ago, Esom has increased the number of Waitrose stores from 128 to 183. He has bought a large number of stores from Morrisons and Safeway and successfully opened a string of new-build sites.
Having succeeded in taking the brand into the north of England and Scotland, he revealed plans last month to take the total number of stores to just under 400 across the UK.
Such skills will come in handy at M&S, where Rose has admitted to difficulties in buying land and developing stores. Rose recently announced plans to triple the number of Simply Food convenience outlets from 190 to 600, as well as to take its new M&S Kitchen offer national. Although Esom's lack of experience in convenience could be an issue, M&S's food business is remarkably similar in size and premium positioning.
They each command just under 4% of the grocery market, with Waitrose sales reaching £3.7bn in its latest full-year results and M&S expected to hit £3.9bn.
They're both green advocates. And Esom has been heavily involved in the implementation of a range of green initiatives for stores this year - including a 27% reduction in carbon emissions at its stores. Rose, meanwhile, has been overseeing M&S's Plan A.
Esom's online expertise, having helped to launch Waitrose Deliver, and working with Ocado, is one asset. Rose has yet to rule out an online food service and the appointment could kickstart any plans. The missing link in Esom's CV is clothing. But it will be two years before Rose goes - plenty of time to prove his worth. n
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