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Debenhams boss Michael Sharp to step down in 2016 | Debenhams boss Michael Sharp to step down in 2016 |
(35 minutes later) | |
Debenhams' chief executive Michael Sharp is to step down in 2016 after five years in the role, the company has said. | Debenhams' chief executive Michael Sharp is to step down in 2016 after five years in the role, the company has said. |
Media reports last month said several of Debenhams' biggest investors were unhappy with the retailer's performance and had pushed for a board shake-up. | Media reports last month said several of Debenhams' biggest investors were unhappy with the retailer's performance and had pushed for a board shake-up. |
But the firm said Mr Sharp had always intended to serve a five year term. | But the firm said Mr Sharp had always intended to serve a five year term. |
Mr Sharp said: "I hope being transparent... will stop recent speculation becoming a distraction." | Mr Sharp said: "I hope being transparent... will stop recent speculation becoming a distraction." |
"I accepted the job of chief executive with the intention of spending five years in the role and although it will be difficult to leave a fabulous company like Debenhams, now is the right time for the board to begin the process of identifying my successor," he added. | |
Mr Sharp has worked for Debenhams or its predecessor, Burton Group, for 30 years, and became chief executive in 2011. | |
There had been mounting rumours over his tenure, with Mr Sharp under increasing pressure in recent years to turn the firm's fortunes around. | |
Mr Sharp has cut back on promotions, strengthened online ordering and delivery options, and added concessions in under-used store space to increase shopper numbers. He has also built the firm's international presence. | |
But the firm has seen little sales and profit growth in recent years, and its shares, though up a third over the last year at around 81 pence, are well down on their November 2012 peak of 124 pence. | |
Debenhams said Mr Sharp will remain in the post during the Christmas trading period. | |
Separately, the company reported full year profit before tax rose 7.3% to £113.5m. | Separately, the company reported full year profit before tax rose 7.3% to £113.5m. |
Like for like sales rose 2.1% in the year, and it sold more own brand clothes at full price. | Like for like sales rose 2.1% in the year, and it sold more own brand clothes at full price. |