By James Davey
LONDON (Reuters) - Marks & Spencer (L:MKS) named Archie Norman as its new chairman on Friday, with the 63-year-old retail veteran's appointment lifting the clothing and food retailer's shares.
M&S said Norman will become non-executive chairman on Sept. 1, succeeding Robert Swannell, who will retire from the board having served six years in the post.
Norman will join M&S at a critical time as while its food business is thriving, its clothing business has struggled to deliver growth for more than a decade.
M&S shares were 4.3 percent higher as investors welcomed Norman's appointment, recognizing his experience and track record, although some analysts said there was a danger he could go beyond the chairman's brief of running the M&S board.
"It will be interesting to see how much of a 'back-seat driver' Archie Norman is to Chief Executive Steve Rowe," said independent retail analyst Nick Bubb.
Norman was instrumental in turnarounds at supermarket Asda and home improvement firm Kingfisher (L:KGF) and has served as chairman of broadcaster ITV (L:ITV), investment bank Lazard and craft retailer Hobbycraft. He worked for management consultants McKinsey before joining Kingfisher.
When Norman joined Asda as CEO in 1991, the supermarket was on its knees, but he transformed the business, introducing the 'George' range of clothing, before, as chairman, selling it to Wal-Mart (NYSE:WMT) in 1999.
He is also well-connected politically, being a former member of Britain's lower house of Parliament, representing the Conservative Party in Tunbridge Wells, southern England.
"Having conducted a very rigorous appointment process, it was clear to us that Archie was the best person to be chairman," said Vindi Banga, M&S' senior independent director.
On Wednesday M&S said it had hired Halfords (L:HFD) boss Jill McDonald to run the clothing division, freeing up Rowe to concentrate on running the overall company. McDonald will join in the autumn.
At Asda, Norman famously played down expectations of a swift turnaround and Bubb said he was "up to his old tricks again" in his statement on Friday.
“I am looking forward to taking on the role of the chairmanship of M&S as the business under Steve Rowe's leadership faces into the considerable challenges ahead in a rapidly changing retail landscape," Norman said.