Carpetright gave the City a double shock on Friday - a profit warning and the exit of its chief executive Darren Shapland.

Carpetright gave the City a double shock on Friday - a profit warning and the exit of its chief executive Darren Shapland.

While the City will be reassured the business is in steady hands with Lord Harris reinstated as executive chairman, the loss of Shapland is a blow. He arrived with an impressive pedigree - as Sainsbury’s finance director he had been touted as a potential successor to Justin King - and his appointment was a coup.

But whatever the reason Shapland could not commit to a five-year tenure at Carpetright, it doesn’t matter now to Lord Harris. He knows what he needs to do for the business - restore stability and drive up profits.

The surprise profit warning came after worse than expected trading in the UK in September and tough trading in the Netherlands, which Carpetright blamed on government austerity measures there.

The retailer is insistent that it is following the right strategy - store modernisation, growing its beds and digital businesses, improving service and extending ranges - and that this is the right path to improve profits.

The September slump in UK trading was disappointing because August had been so encouraging. But it is just one month and all previous signs point to the strategy working.

Carpetright instead blamed the volatile UK market and depressed consumer confidence. Like other major retailers, Carpetright said that, while some economic data may point to a recovery, consumers are not yet feeling better off. And you only have to look at John Lewis’ weekly figures to see the home sector has struggled.

The floorings retailer is also insistent it will not pull out of the Netherlands. The macro economic environment across Europe is tough for many retailers - Tesco being the obvious example - but Carpetright has a robust businesses in the Netherlands. If it can hold its nerve and steady the ship it should be able to ride out the storm.

Lord Harris may be disappointed with Shapland’s exit, but he knows the business better than anyone and will ensure it’s positioned for growth before he retires again.