UK retailer Co-op Group recently announced that it will be appointing the CEO of its food business, Steve Murrells, as group CEO, succeeding Richard Pennycook.
Pennycook is stepping down from the position and returning to a 'planned portfolio career', which he had put on hold to join the Co-op Group as interim CEO.
He joined the company in 2013, 'at the height of its crisis,' and helped guide the group through its 'rescue' and 'rebuild' phases.
The CEO transition is part of the company's move into the 'renewal' phase of its turnaround.
The company said that operations will return to form after the third and final year of this phase, having seen strong results in the last two years.
The final phase will 'seek to put the Co-op, once again, at the heart of communities in the UK, championing causes that are important to them, and trading with an ethical heart and a social conscience'.
Murrells became CEO of Co-op's food business in 2012, and his management has seen Co-op's food section surpass market performance for 18 periods in a row, the company said. He was previously the CEO of Danish meat company Tulip, and he has held a number of senior positions in Tesco.
He said of his appointment, “I take over at one of the most exciting times in our 150-year history. All the signs are that consumers are looking for a different type of business, one that looks after them and their communities, and I truly believe that the Co-op is that business."
His remuneration package includes a £750,000 yearly salary, plus annual and long-term incentives.
He will replace Pennycook on the board on 1 March. The outgoing CEO will conclude his employment at the end of March, but has said that he will stay on in an advisory capacity, focusing on relations with the Co-operative Bank.
Current COO Pippa Wicks will become the deputy CEO, and the finance director of Co-op food, Jo Whitfield, will be elevated to CEO on an interim basis.
Allan Leighton, chair of the Co-op Group, said of the transition, “Richard Pennycook saved our Co-op. In three short years, he has rescued and rebuilt our business and restored pride to our 70,000 colleagues and 4.5 million members. We owe Richard a huge debt of gratitude, and his place in Co-op history is secured."
The Co-op is the fifth-largest retailer in the UK, operating more than 2,500 local, convenience, and medium-sized stores.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up for ESM: The European Supermarket Magazine.
