Waitrose managing director Mark Price is leaving the grocer after 33 years, but the timing of his move away from retail makes sense.

Little Waitrose

The long-serving grocer, who has also been deputy chairman of the John Lewis Partnership for two years, shocked many by revealing this morning that he is leaving the retailer, but industry he and observers say there is nothing ‘untoward’ about him stepping down.

Neil Saunders, managing director of retail consultancy Conlumino, says Price’s wide-range of interests explain his itchy feet.

Price said: “I reach two milestones next year: the grand old age of 55 and the start of my 10th year as managing director of Waitrose. I’ve always had in mind that 10 years would be about the right length of time to do this.

“And so I’ve concluded that this is the moment to go and do other things in business, consultancy, writing and lecturing. In addition to continuing as deputy chairman of Channel 4. I have accepted several invitations to give guest lectures at business schools and universities. I am also writing a number of books.”

One of the reasons he is leaving Waitrose is in order to be in the running to take on the Channel 4 chairmanship full-time ahead of a possible privatisation of the broadcaster.

It has already been reported he will take the Channel 4 role on an interim basis when incumbent Lord Burns steps down early next year.

“Mark Price is very rounded and very interested in business and media and all sorts of things and that has been really positive and has brought in a lot of outside focus to Waitrose,” says Saunders. “The slight issue is that someone who has a large amount of interests wants to pursue other things.”

Great opportunity

Independent retail analyst Nick Bubb believes that Channel 4 is a “great opportunity for Mark and he could have been waiting for many years to take over from [John Lewis Partnership chairman] Charlie Mayfield”.

However, Saunders is not entirely convinced that the John Lewis Partnership chairman role would have been the right one for Price because of his personality.

“It is not always the most exciting of roles. It is a bit like being queen - you have the status and symbolism but are not involved in the nitty gritty and that is something that he would miss,” says Saunders.

“I don’t think he has used the timing to get out of a tight spot”

Neil Saunders, Conlumino

Waitrose has been battling in the ultra-competitive grocery sector of late and full-year operating profits fell 23.4% to £237.4m last year as it invested in order to keep on the front foot. However latest Kantar figures show Waitrose sales rose 2.1% in the 12 weeks to October 11, while the grocer retains a 5.2% market share.

But Saunders says it would be “disingenuous” to suggest Price is bowing out when the going is tough in grocery.

“I don’t think he has used the timing to get out of a tight spot,” says Saunders. “Mark wants to give that opportunity to someone else now, he does not want to start the next phase of growth and not see it through.”

The legacies of former bosses of some big grocers have been called into question of late following their departures. Questions have been raised about the state Sir Terry Leahy left Tesco in for Phil Clarke, for instance.  

“It’s a bit too soon to be writing about Mark’s legacy as he will still be there until April,” says Bubb.He believes Waitrose’s relationship with Ocado, which sells Waitrose products but also runs rival Morrisons’ online business, will be top of Price’s successor Rob Collins’ agenda next year, along with price competiveness.

Waitrose in good position

Saunders believes Price has left Waitrose in a good postion for Collins, who is at present retail director at the grocer.

When Price took the helm Waitrose was a “moderately successful” grocer but lacked a “sense of ambition, national scale, and commercial rigour “, according to Saunders.

Nine years on and 200 stores have been added, the online business has been transformed and the supply chain overhauled, argues Saunders.

Saunders is upbeat about the upmarket retailer’s position in the market because of its differentiated proposition.

“The low hanging fruit has been picked but I think they will find profit growth soon,” says Saunders. “I think it it will continue to see growth for the next few years, and that is obviously dependent on the leadership.”

Price has already ruled out a return to the retail industry. The larger-than-life grocer will leave a big hole when he bids farewell to his colleagues in April.