Halfords’ new chief executive appointment has raised some eyebrows, but how much her leadership will affect the retailer remains to be seen.

Halfords served up a surprise this week with the appointment of Jill McDonald, boss of fast-food giant McDonald’s European operations, as its new chief executive.

Joining the business in the middle of a turnaround that has established momentum, McDonald faces an altogether different set of challenges from other recently hired retail chiefs, where crisis management and the will to make decisive strategic changes have been the main prerequisites of the CV.

As with Dave Lewis at Tesco, McDonald’s lack of conventional retail experience has raised some eyebrows.

However, like him, she has a particular set of skills and experiences that not only suit the retailer she is to lead but will allow her to bring a fresh perspective – a perspective likely to complement the experience in the business.

Halfords’ change of fortunes has been linked to a new focus on cycling, a leap forward in its customer service proposition and behind-the-scenes work to improve staff engagement.

McDonald is not known to be a bike enthusiast but she has a track record in the other two pillars of Halfords’ turnaround. And it is no coincidence that her impressive run of results at McDonald’s coincided with its reputation as one of the top companies to work for in the UK.

Her predecessor Matt Davies’ skills and vision in setting Halfords back on the path to growth were so highly regarded that they resulted in Tesco poaching him mid-job.

Succeeding him will be a challenge and Halfords chairman Dennis Millard has been clear to articulate that his preferred candidate had to understand and buy into the existing strategy. “She recognises that we are midway through a strategy and agrees with it,” he said. So, whilst McDonald will clearly be her own woman, significant change is clearly not on the menu.

Grocery war is real

The rate of inflation has fallen to 0%, its lowest level on record, dispelling once and for all the idea that the grocery price war is in any way phoney.

Food prices have now fallen or remained unchanged on the year for 10 consecutive months. This war is very real, and has significant consequences for the grocers.

But non-food retailers will hope to benefit as shoppers save on food expenditure. There are signs consumer spending is on the rise and disposable income levels are reaching a tipping point. 

Retail has been slow to benefit from the improvement in the economy thus far. The sector will hope that may change for general merchandisers at least.

  • Chris Brook-Carter, Editor-in-chief