Poundland's chief Jim McCarthy to retire
Poundland Group PLC, a UK-based discount retailer, announced the retirement of Jim McCarthy as the chief executive officer of the company. Jim joined Poundland in 2006 August. During his stewardship, the company increased its business to more than 900 stores in Spain, Ireland and the UK. The company also enlarged its customer base by serving more than 7 million clients each week and added extra sales of £1 billion.
Previously, Poundland operated just 146 stores with revenues of £310 million. Darren Shapland, chairman of Poundland, said that Jim McCarthy transformed the company into a robust business. His expertise in retail business combined with his management style laid the grounds for Poundland's success in the retail industry. Finally, Darren thanked Jim for his effort and time he has given to the company.
Jim McCarthy said, "Poundland is a strong business, which I am privileged to have had the opportunity to lead through a period of significant growth and change. After over 40 years in Retail, including 10 years leading Poundland, I will leave the business in the hands of a very experienced leadership team who I know will give Kevin their full support".
The company said that Jim McCarthy will be succeeded by Kevin O' Byrne as the next chief executive officer of Poundland. Kevin will take over the office from Jim on July 1 while Jim will remain on the company's board until September 2016. During his profession, Kevin has served the boards of Kingfisher Plc and Dixons Retail Plc. Recently, he was the CEO of B&Q Ireland and the UK at Kingfisher.
Kevin in his speech said that he is pleased to join Poundland's board. He continued that Jim along with his board members has created a strong business portfolio and that he expects to further strengthen the company's financial position.
High competition in the retail sector along with the advent of online shopping led Poundland to a miserable condition during the previous six-month period. The retailer said that it anticipated profit before tax for the year to be at the lower side of analysts' estimation, as reported by Financial Times.
Clive Black, a Shore Capital's analyst, admired Jim McCarthy for his achievement in the company and also welcomed the new leadership of Kevin O' Byrne. According to him, after the integration of 99p Stores with Poundland, a strict executive team could construct better business opportunities in Ireland and the UK, improve online market and extend the business portfolio in Iberia.
Bloomberg said that Byrne will have to regain sales growth at the retailer that was weakened by the increase in the online retail market. The shares of the retailer rose 1.2% to 183p during the opening trading session on Wednesday following the news.
Poundland's executive team is trying hard to improve the business portfolio amid the growing competition from online retailers. The retailer expects a wonderful growth period under the management of Kevin O'Byrne.