The Bookseller.com

2nd December 2008

EUK not the problem for Woolies boss

13.08.08 Graeme Neill

The new chief executive of Woolworths Group, Steve Johnson, is likely to restructure the business, analysts have claimed. But EUK is not the problem, one added.

The retailer announced on Tuesday that the former chief executive of Focus DIY would take the helm from 1st September. Johnson replaces Trevor Bish Jones, who left the company in June. In a statement, Woolworths said that while at Focus Johnson ran a renewal strategy geared towards growing sales, enhancing margins and reducing costs.

"With his strong background in both retail and consultancy, together with his particular experience in achieving a turnaround at Focus, he brings the strategic and operational skills that the group needs to help it move to the next stage of its development,” said Richard North, chairman of the retailer.

His appointment got a warm response from the City with one analyst claiming that among Johnson’s duties would be restructuring the business. “I think he will look to improving shareholder value, perhaps by spinning out parts of the business,” he said.

Another said that any fears about wholesaling wing EUK were misguided. Last week, the wholesaler moved to reassure small and independent publishers after some had credit insurance cancelled. “EUK is not a problem,” he said. “The main worry for that business would be a slowdown in music sales not books.”

Steve Johnson said he was focused on moving the group forward. “Woolworths is a well-loved high street brand operating in attractive markets, while the EUK and 2 entertain businesses have grown to hold market-leading position in their respective markets.”

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