Boss of the Co-op steps down

Richard Pennycook, the boss credited with “saving” UK retailer the Co-op is to step down as CEO next month.

Steve Murrells will succeed Pennycook as Group CEO in March

Pennycook, who has been widely credited with turning around the business following its crisis in 2013, will step down on 1 March after a “short transition”. He will be succeeded by Steve Murrells, who oversees the Co-op’s food business, although he will stay on as an advisor to the Group’s banking arm.

Pennycook joined the business in 2013 shortly after the group reported an 89% slump in profits, a £1.5bn shortfall at the Group’s banking arm, the Co-op Bank was discovered. Initially appointed finance director, he was promoted to CEO in March 2014, and led the team through a ‘Rescue and Rebuild’ programme to rebuild the business.

Chairman of the Co-op, Allan Leighton said 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,” he said.

A company statement added that the strength of the management team built during the turnaround, gave the Board “great confidence that the transition to new leadership under Steve Murrells will be seamless”.

Murrells has headed up The Coop’s food business since 2012, which includes its Beers, Wines and Spirits team, implementing its local food plan and presiding over 18 months of consecutive growth.

Group Operating Officer Pippa Wicks will support Murrells as Deputy CEO, with Jo Whitfield currently Finance Director of the food business stepping into Murrell’s current role as CEO of Co-op Food on an interim basis.

Leighton added that the group was “fortunate” to have Murrrels as its new Group CEO.

“He is a natural co-operator, a great leader and has already done so much to return our Co-op to its former glory. Steve has transformed our food business and put it back at the heart of communities across the country. His leadership has seen our Co-op consistently outperform the market in food and he is the right and unanimous choice to now take the whole Group forward for the next phase of our transformation.”