Former Carpetright boss Darren Shapland has been appointed as Poundland chairman today. Retail Week profiled Shapland in 2012 when he was hired by Carpetright.

Darren Shapland

The switch from selling crackers to carpets will not have been too dramatic for Darren Shapland, the former Sainsbury’s group development director who has taken up the position of chief executive at Carpetright.

After all, he made his name at the floorings giant between 2002 and 2005 when he was finance director, and he was appointed a non-executive director of Carpetright last year.

But while he may not have to adapt too much to the product change, there is no doubting that he has taken on a tough role – Shapland will be the first person other than founder Lord Harris to lead the business, and he takes on the job at the toughest of times.

Carpetright last week revealed earnings had fallen to their lowest level since 1992. Underlying operating profit slumped from £17.8m to £2.8m in the year to April 28.

Will Shapland be able to make his mark under the watchful eye of legendary founder Lord Harris, who, while relinquishing his role of chief executive, retained his position as chairman? Shapland insists he will have “absolute freedom” in decision making, adding that he “wouldn’t have taken the job” if he thought otherwise.

The choice of Shapland, who joined Carpetright in May, pleased the City, which welcomed the injection of fresh blood into the retailer. Espirito Santo analyst Sanjay Vidyarthi called Shapland’s appointment a “major positive”. Panmure analyst Philip Dorgan said under Shapland there is a “considerable profit opportunity”.

However, while it may have been welcomed by analysts, the news could have come as a surprise in some quarters. Lord Harris had been effectively grooming his son, group commercial director Martin Harris, to take over the business when he stepped down. But the retail veteran had always pointed out that while he favoured Martin for the top job, the final decision lay with the shareholders, and if a better person for the job came along he would welcome them.

Shapland expects to learn much from Lord Harris. “The first six weeks I was in learning and understanding mode,” he says. “Lord Harris is one of the great legends of retailing and he’s staying heavily involved in two or three areas – buying, property and also stores.”

When asked how he will do things differently to Lord Harris, Shapland says it is more about evolution than revolution. “From my perspective the business is very well run and has done well through this downturn,” he says. “There are now a number of other self-help initiatives we can take, but I don’t see things changing much. We will utilise his experience.”

Shapland will of course have his own experience to draw on in his first chief executive role. Like so many of his peers, he cut his teeth at the Burton Group, where he spent 13 years before moving on to Superdrug where he was finance director.

He was a highly regarded chief financial officer at Sainsbury’s, presiding over the grocer’s books as it generated strong growth under Justin King. Indeed, he was seen as a potential successor to King, particularly after taking on the role of group development director.

As part of that job he was charged with analysing the possibility of overseas expansion, including in China.

While Sainsbury’s, which he left last July, did not launch internationally in his time, Carpetright will provide Shapland with overseas experience through its 142 stores in the Netherlands and Belgium.

But with profits tumbling and no likely uptick in consumer confidence in the UK, what will be the biggest challenge at Carpetright for Shapland, who has been used to rising sales and profits at Sainsbury’s?

“The biggest challenge will be how we take market share, and I’m pretty confident we can,” says Shapland. “We have big opportunities in growing share and building the beds business.”

Shapland describes the first six weeks of his tenure as a “whirlwind”, and with the economic storms showing no signs of abating, Carpetright is likely to continue to find life difficult. 

But with his financial nous and strategic approach to retail, Shapland is well poised to floor the opposition.

Career history

May 2012 to present Carpetright chief executive

August 2005 to July 2011 Sainsbury’s chief financial officer/ and latterly group development director

October 2002 to July 2005 Carpetright group finance director

December 2000 to 2002 Superdrug finance director

March 1988 to November 2000 Burton Group, various roles