Woolworths chooses DIY chief as boss
Woolworths, the troubled British retailer, has appointed former head of Focus DIY Steve Johnson as its new chief executive, in an attempt to revive its fortunes.
Johnson, 44, takes over from Trevor Bish-Jones, who was ousted in June, and will earn a basic salary of £550,000 a year, as well as a cash bonus of up to 50 per cent of his salary. But if Woolworths’ shares reach 20p in four years time, he could expect an additional £4.8m.
Johnson, who helped rejuvenate Focus stores by reducing costs and enhancing margins, is now hoping to reverse the continuing downturn that Woolworths has experienced for many years, with sales sinking a further 6.7 per cent just in the six weeks to 26 July.
The company, founded in Liverpool in 1909, has been long squeezed by competition from supermarkets and internet retailers.
Seymour Pierce analyst Freddie George said Johnson would be taking on a tough post. “It is going to be a very difficult job, as they have tried for about 20 years to find a remedy, but without success. But I am confident that he can be the right man.”
