Shareholders yearn for retail chiefs like Swann

It has been an annus horribilis for the high street. Closures, job cuts and profit warnings in the last 12 months have all thrown scrutiny on the industry – and its bosses – like never before. Which is why yesterday’s announced departure of SSP chief executive Kate Swann is all the more significant.

Swann is that rarity of being a continuously successful retailer. Her CV reads like a litany of big retail names, from Tesco, through Homepride, Coca-Cola, Dixons, Homebase and Argos, and she has not only taken SSP in five years to a global presence in the travel food market; in her previous post she pulled off the singular feat of turning around WH Smith.

Analysts sang Swann’s praise (a rare feat) yesterday for her ability to find growth opportunity and provide a steady hand at such a volatile time. But if any more evidence of the chief executive’s highly-regarded reputation is needed, it can be found in yesterday’s reaction from the City.

Despite a robust performance of higher profits and special dividends, SSP shares slumped more than eight per cent, as traders digested the news that the FTSE 250 company would be without the turnaround titan next year. Swann’s announced departure comes as others in her industry pray for a much-needed Christmas boost, amid the harsh reality of stiff competition and changing consumer habits, not to mention the burden of long leases.

Yet many of the woes facing today’s embattled retail and restaurant groups are the same ones that were plaguing WH Smith when Swann moved into its boardroom. It too was nursing a legacy of excess property and huge exposure to the high street, but in rebalancing the store portfolio towards travel hubs like stations and airports, Swann forecasted the changing retail winds and the importance of location.

With a ruthless attention to detail and clear-sightedness that has delivered strong earnings growth and repeated profit upgrades, Swann ticks all the boxes for City shareholders.

It should come as no surprise, therefore, that while she told City PM her future career path is yet to be determined, beleaguered consumer firms will waste no time in trying to woo the retail veteran now that she is set to be a free agent.