Fox has been hailed a magician for his turnaround of HMV so it’s no surprise he’s being chased by stricken broadcaster ITV, says Tim Danaher

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Profiles of HMV chief executive Simon Fox rarely miss the opportunity to mention his membership of the Magic Circle. It’s not just because conjuring is an unusual hobby for a
retail leader, but also because with the turnaround he has overseen in a business many had written off, he seems to have demonstrated an ability to achieve the impossible.

Other businesses now want some of Fox’s magic. He has emerged as a frontrunner to take over as chief executive of stricken broadcaster ITV, which was due to announce interim results, and possibly its new boss, yesterday. The ITV job is a task Chris Curtis, news editor of TV industry bible Broadcast, describes as “gargantuan”.

The fact he is being linked with one of the biggest jobs in media shows the reputation Fox has carved since joining HMV just under three years ago. “He’s done a terrific job,” says his immediate predecessor Alan Giles, who describes him as “a very unusual blend of cerebral strategist combined with sufficient interpersonal skills to be a good leader”.

“He’s very very bright,” says Kingfisher chief executive Ian Cheshire, who worked with Fox at Kingfisher. “But he’s developed much more general leadership skills. He’s someone people like working with and for.”

Turnaround touch

When he joined HMV in September 2006 many had written off the company as a lost cause, as the internet and the supermarkets ate away at HMV’s markets. The mild-mannered Fox immediately bared his teeth, replacing HMV managing director Steve Knott by taking on his responsibilities himself.

While he lacked the fans’ enthusiasm for music that Giles had, he has developed a passion for the products and is widely liked in the industry for his amiable nature and good humour. “He has a slightly nervous, almost nerdy air when you first meet him,” says one retailer. “But that first impression changes quickly once you get to know him.”

Fox’s background is much more the retailer than the media impresario. A former management consultant, he founded Office World before joining Kingfisher in 1998.

It was his work as managing director of Comet, where he successfully differentiated the by-then Kesa-owned business from its rivals, that made his name in UK retail. He shifted the business from a price-led to service-led proposition, developed its online offer and replaced the old red logo with the now-familiar black and yellow to distinguish it from rivals. But although he made it to chief operating officer, he is understood to have been concerned he couldn’t get the top job because he wasn’t French.

At HMV, Fox has recognised how quickly its core markets are changing and the need to diversify, while seeing the opportunity to grow market share as competitors fell. He has built on the previous management’s move into games and developed a new store format including elements such as gaming zones and juice bars.

But the most eye-catching move has been the partnership with live music venue operator MAMA, under which nightspots such as the Hammersmith Apollo have been rebranded with the HMV name. A cinema, in a tie-up with the Curzon chain, will also be trialled.

Not all are convinced Fox’s magic can be sustained. Sceptics say the collapse of all its major rivals in entertainment, notably Zavvi and Woolworths, has made it easy for HMV to snaffle market share and that Fox’s initiatives have done little to address the structural problems of decline in its core markets of CDs and DVDs. While HMV has had all the attention, the group’s book chain Waterstone’s has struggled.

But the strategic nous Fox would bring to ITV would be hugely valuable. “There needs to be a radical reassessment of its strategy and goals and a willingness to be innovative and potentially ruthless,” says Curtis. It will take a brave man to take on that job. But Fox has proved he can work magic with seemingly hopeless causes.

What they say about fox

“He’s done a fantastic job. He’s one of those guys who’s very easy to get on with, has a very open management style, is obviously very bright and yet has the common touch”
Sir Geoff Mulcahy

“He’s not as acerbic as other retailers but there’s no doubting he has the steel to run a business like HMV”
Stephen Robertson, BRC director-general

“What he’s done really well is leveraging the HMV brand into radically different areas”
Alan Giles, former HMV chief executive