Former Asda boss Archie Norman named next M&S chairman

Shares (Berlin: DI6.BE - news) in Marks & Spencer (Frankfurt: 534418 - news) have surged after former Asda boss and ex-Conservative MP Archie Norman was named as its next chairman.

He will take over in September on the retirement of current chairman Robert Swannell.

Shares closed 5% higher following the announcement on Friday.

Mr Norman was credited with the turnaround of Leeds-based Asda in the 1990s before it was snapped up by US retail giant Wal-Mart.

Sky News revealed last week that M&S was in advanced talks to name him as chairman.

The appointment is the latest change at the top of the retailer, after Steve Rowe took over as chief executive last year.

Earlier this week M&S said it had poached Halfords chief executive Jill McDonald to revive the fortunes of its struggling clothes and homewares division.

In another sign of change, it is to launch a trial of online food retail marking its first step into the business of delivering groceries to customers in their own homes.

The group has also recently been setting out details of a store closure plan.

Announcing Mr Norman's appointment, M&S said he had been "instrumental in transforming a number of major British businesses" including Kingfisher (Frankfurt: 812861 - news) and Asda.

He has also served as chairman of ITV (Frankfurt: A0BLQP - news) , Lazard London and Hobbycraft, and last year was appointed as lead non-executive board member at the Department for Business, Energy and Industrial Strategy.

Mr Swannell said: "I am delighted that Archie, with his deep, relevant experience, is to be M&S's next chairman."

Mr Norman said: "I am looking forward to taking on the role of the chairmanship of Marks & Spencer as the business under Steve Rowe's leadership faces into the considerable challenges ahead in a rapidly changing retail landscape."

The challenges facing clothing retailers were thrown into sharp focus the previous day when rival Next (Frankfurt: 779551 - news) reported a sharp drop in first quarter sales and scaled back profit expectations.

It pointed to the squeeze facing consumers as inflation rises while pay growth stutters.

Clive Black, retail analyst at Shore Capital, said: "Mr Norman is a formidable appointment who, alongside Steve Rowe, who is CEO of M&S, means that there are two very strong characters at the helm of a once great British label that is trying to refind its purpose and relevance to the British shopper to profitable effect."