The Co-op chief executive has been through tough times with the business. He tells George MacDonald about the retailer’s renaissance.

Co-op chief executive Peter Marks is one of the few men in retail to sport a beard - often seen as a bit of a no no in business.

A study done a few years back revealed that a beard gives the impression of “a cardigan and sandal-wearing person with a lack of focus”.

But it is not an image that fits Marks, who needed plenty of focus to work his way up from being a shelf-stacker in his local Co-op to head of what is now a £15bn-turnover food-to-funerals giant.

And despite the retailer’s community-based and left-leaning heritage, any association with sandal-wearing would be misconceived. Ethical trading, long championed by the Co-op, is now an established part of the stores mainstream while the retailer is commercially as red in tooth and claw as would be expected in the ferociously competitive grocery environment.

Marks describes dropping out of grammar school - he would not have been able to afford to go on to university - to work in retail as the best thing he ever did. The Co-op opened doors, whether supporting him in a business studies course at night school or providing commercial experience ranging from department stores to travel.

“I worked hard, but I was greatly helped by the Co-op and that’s one of the reasons I’ve stayed loyal to it,” he says. “The fact that it’s so diverse is great. There are not many organisations that can offer such a range of experience.”

Now, as young people struggle to get university places after leaving school, Marks says: “I’d like to think my story can inspire young people. We’re going to take on about 2,000 apprentices [over the next few years] and any one of them could do what I’ve done.”

While Co-op is now number five in food retail with a market share of 7.6%, Marks recalls that not so long ago the business was in danger of being consigned to history.

He is proud of the part he has played in what he terms the Co-op’s “renaissance”. He became chief executive of an enlarged business after merging United Cooperatives, which he formerly ran, with the Co-operative Group in 2007.

Marks is unapologetic about how the Co-op has changed and its more aggressive commercial stance, which was vital to its survival. “We benchmark ourselves against the plc world,” he says. “I’m sometimes accused of being too commercial and not focusing enough on the soft side, like values and principles.” But, he points out, the values and principles could not be delivered without commercial success.

His drive to build the Co-op has led to more deals, notably the £1.6bn acquisition of Somerfield in 2008. Disruption resulting from the conversion of Somerfield stores caused the Co-op’s food retail like-for-likes to fall 1% in the first half, although converted and rebranded stores increased 2.5%.

Marks is relaxed about how Somerfield is shaping up. He says: “This is the biggest integration bar none in food retail in terms of store numbers and it’s going extremely well.”

He points out that the Co-op is converting 24 shops a week, which have to close for a few days while work is done, so it is no surprise there has been an effect on sales. He insists the integration of the Co-op and Somerfield will be completed on schedule in early 2011.

One retailer Marks admires is fellow Bradfordian Sir Ken Morrison, “who went from nothing to creating one of the leading retailers”. Morrison of course was floored by the problems of integrating Safeway. But Marks seems confident he won’t share that trait of his business hero.

Age 60

Management style “I’m a democratic autocrat”

Family Married with two daughters

Education St Bede’s Grammar, Bradford