WHSmith CEO Carl Cowling is stepping down from the company, following an independent review by Deloitte. 

The retail boss is set to step down as group CEO and as board director with immediate effect, but will remain employed by WHSmith until 28 February 2026.

The retailer’s board has launched a formal search for a new group CEO.

WHSmith has named CEO of the group’s UK division, Andrew Harrison, as its new CEO until a permanent appointment is made.

Cowling has served as the retailer’s CEO since November 2019, after joining WHSmith in 2014.

The independent review by Deloitte identified various “shortcomings” that caused WHSmith to overstate profits within its US arm by as much as £50m.

Contributing factors included weaknesses in the composition of its finance team and insufficient systems, controls and review procedures for supplier income across its commercial and finance functions, the retailer said in a statement.

Cowling said: “Whilst the issues identified in the Deloitte review arose in our North American division, I recognise the seriousness of this situation and as group CEO feel it is only right that I step down from my position.

“It has been a privilege to lead WHSmith for the past six years as CEO. 

“During this time, we have guided the company through the unprecedented challenges of the pandemic, pioneered our highly successful one-stop-shop for travel essentials, and completed the divestment of our high street and online businesses.”

WHSmith chair Annette Court added: “On behalf of the company and the board, I would like to thank Carl for his significant contribution to WHSmith over the last 11 years. 

“Upon being appointed as group CEO in November 2019, Carl successfully navigated the company through the global pandemic and, more recently, has strategically repositioned the group as a pure-play travel retailer. We wish Carl every success in the future.”

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