Retail CEO appointments last year plunged by more than a quarter in the UK compared to 2022.
Just 31 chief executives were hired in the sector in 2023, down from the 41 the year before, making it the most significant drop in more than a decade, outside of the Covid period, said executive search firm Korn Ferry.
Only four retail CEO hires were made across UK publicly held companies, and two of these had been seats which had also changed the prior year.
Korn Ferry managing director Sarah Lim said: “2023 was a much more subdued year for CEO change.
“The level of economic uncertainty, and the fact that so many CEOs had changed seats in the previous 18-24 months resulted in less motivation to move for many.”
“There was also less appetite on behalf of boards to switch out their CEOs, except in cases of under-performance or ownership change.”
Lim believes retail CEO recruitment will be “steady again” in 2024, with some increase on last year.
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“There will be the inevitable Q1 CEO churn as Christmas performance data comes out and boards seek to change leadership in light of underperformance,”
“However, similar to last year, we predict CEO changes in the year ahead to be more as a result of replacement hires and change to correct underperformance, than as a result of big new company growth or expansion initiatives, although we may start to see an escalation in the second half.”
Of the new retail CEOs appointed, 35% were female – up from 31% the year before – with most hired in the fashion and beauty sector.
Additionally, three ethnically diverse CEOs were hired during the period, compared to one the previous year.
Lim pointed out only one non-retail chief executive appointment was made last year, that of Nish Kankiwala as John Lewis Partnership CEO, while every other hire had previous experience in the retail industry.
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