When Kevin O’Byrne was poised to leave Kingfisher, he told Retail Week he hoped his next job would be “something I can get my teeth into”.

His wish has come true.

Yesterday Poundland unveiled Kevin O’Byrne as its new chief executive, replacing Jim McCarthy who is standing down after 10 years in the role.

kevin_Obyrne

kevin_Obyrne

Kevin O’Byrne

In last year’s ‘exit’ interview with Retail Week O’Byrne, who was most recently chief executive of the B&Q brand and headed three countries, also said it was important for him to work in a business where he can see “some way to make a difference”.

And at Poundland he should have a good opportunity.

The single price-point retailer proved incredibly popular during the recession and demand for its value products seemed unstoppable.

However, things haven’t looked so rosy lately. Interim like-for-likes fell 2.8% and profits dropped by a quarter, while its share price has nearly halved in the past six months.

“Following Poundland’s soft launch of its first ecommerce site last year, O’Byrne is likely to want to expand the retailer’s digital offering further”

Reasons for that decline have been blamed on everything from the fallout of 2014’s loom band craze, to the weather. More worryingly, competition has intensified with rivals such as B&M ramping up expansion, and some have noted the 99p Stores acquisition could have been a distraction.

Dublin-born O’Byrne, one of the few career finance directors to make it to the chief executive seat, will no doubt be prioritising a smooth transition of that acquisition when he takes the helm.

And following Poundland’s soft launch of its first ecommerce site last year, O’Byrne is likely to want to expand the retailer’s digital offering further.

Global space

International is clearly a huge opportunity for Poundland, which in recent years has rolled out its Dealz fascia to Ireland and Spain. And the business believes it has huge scope to further expand in the UK too – in the past it has said it could have 1,000 stores here. It has about 550 at present.

And it is expected that O’Byrne will also look to find efficiencies across the business, particularly in supply chain – something he has vast experience of at B&Q.

While the variety sector is new to O’Byrne, the management of Poundland is not. He is known to be close to chairman Darren Shapland, the two having seen each other on the circuit for many years as finance director peers – when Shapland was finance chief of Sainsbury’s, O’Byrne held the same position at Dixons.

Shore Capital analyst Clive Black praises Shapland’s “seamless change in the top position”. O’Byrne joins Poundland as chief executive designate on April 4, with McCarthy staying in the business until September to ensure a smooth handover.

According to Black, McCarthy will be “doing a little coaching” of his successor. Lucky, then, that two are said to get on well.

While Black clearly holds McCarthy in high regard, he sees O’Byrne as a “very strong replacement”.

Black calls rugby-mad O’Byrne “a distinguished retailer and businessman with an excellent curriculum vitae”.

“He has considerable international skills with a strong finance heritage and capability being a chartered accountant with experience in consumer staples,” says Black, in reference to O’Byrne’s role as European finance director at Quaker Oats.

O’Byrne is certainly a well-regarded retail leader but he left Kingfisher in frustrating circumstances.

“We shall be interested to see how O’Byrne’s plans for Poundland evolve. The group has been through considerable change recently”

Clive Black, Shore Capital

One of the first things group chief executive Véronique Laury did when taking the Kingfisher helm was to introduce a new layer of management above him, effectively demoting his position. A tough pill to swallow for O’Byrne who was seen by many as a contender to take the top job after Sir Ian Cheshire moved on.

But with a big new role to his name, O’Byrne has since moved on.

Although he may not have it easy at Poundland either, for other reasons.

Black says: “We shall be interested to see how O’Byrne’s plans for Poundland evolve. The group has been through considerable change recently, which continues apace with the conversion of the 99p Stores estate.”

Black also highlights pressures on its profitability, including foreign exchange movements and a tough UK market exacerbated by weak high street footfall.

One thing is certain, if anyone has the gusto to take it on, it’s the energetic gym-goer O’Byrne.

Career history

2016 Chief executive, Poundland

2012 Divisional chief executive, Kingfisher, B&Q

2008 Group finance director, Kingfisher

2002 Group finance director, Dixons

2000 Chief financial officer, Hemscott

1995 European finance director, Quaker Oats; non-executive director, Land Securities

  • Also a non-executive director of Land Securities