The appointment of the B&Q UK chief executive to the top job at parent Kingfisher follows the announcement in November that Kingfisher group chief executive Gerry Murphy was stepping down after five years at the helm.
Kingfisher chairman Peter Jackson said: “He has extensive experience of international home improvement retailing and knowledge of the Kingfisher business, both in the UK and internationally.”
Cheshire has held a wide variety of roles in the UK and internationally since joining Kingfisher in 1998. He has been B&Q UK chief executive since 2005.
Cheshire said: “There is significant potential for a real step change in shareholder value. To achieve this, we will move at pace, focusing on the customer, tightening our control costs and making sure that our cash and capital works more productively. Every part of the group must deliver value to our shareholders. With the right team consistently focused on these clear priorities I believe we can improve shareholder returns.”
Pali International analyst Nick Bubb said Cheshire faced several major challenges. “A search was done externally, but with the likes of Kate Swann tied down and with other available candidates not fancying the thankless task of running a big DIY retailer ahead of the consumer downturn, the well-respected head of B&Q Ian Cheshire got the top job. A hospital pass?
“Whether he can do anything to change the worrying downtrend in group profits is uncertain.the strength of the Euro helps the translation of the big French profits, but UK prospects are bleak and, with cash control a priority, a dividend cut looks unavoidable.”
In the role of B&Q chairman, Cheshire will continue to work closely with the B&Q management team on its renewal programme. A search for a B&Q managing director will start immediately.
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