Marks & Spencer Group Plc, the largest UK clothing retailer, said Chief Executive Officer Stuart Rose will become executive chairman in June, taking over from Terry Burns when he steps down from his non-executive role.

Rose will stay with the company until June 2011, when he will retire, the London-based retailer said yesterday in a statement. The retailer also appointed David Michels as deputy chairman and said Finance Director Ian Dyson will take on responsibility for retail and human resources.

Rose, 58, was appointed in May 2004 to fend off a bid for Marks by billionaire Philip Green. Under his leadership, the company redesigned shops and used models and singers in its commercials to reverse a sales decline, and Rose said in November he plans to expand in Asia. The stock dropped in January after an unexpected drop in holiday sales.

"Clearly if Stuart was to step down in the next year he would be going out on a low note in the middle of a downturn," said analyst Nick Bubb at Pali International Ltd in London. "I think he wants to have another two years to get it back on track and see through the growth plan in China."

Bubb, who has a "neutral" rating on the stock, said he had expected the retailer may make an announcement on Rose's departure in the next year.

Marks & Spencer declined 2 pence, or 0.5 percent, to 376 pence at 11:33 am in London trading. The stock has slid by a third this year.

The retailer in January reported its first quarterly same-store sales drop in two-and-a-half years.

Agencies

(China Daily 03/11/2008 page17)