Departing Warehouse CEO happy with his work

Departing chief executive Ian Morrice says he has achieved his goals at The Warehouse, set when he took the top job in 2004 for a three-year stint, and leaves the company in good health.

Mr Morrice, who will retire this year, indicated his intentions last year to the board.

The country's largest listed retailer said yesterday that Mark Powell, a supply chain specialist who started work in the underground coal mining industry, is graduating from Warehouse Stationery chief executive to take top job for the whole of The Warehouse Group.

The Warehouse had considered internal candidates and searched New Zealand and offshore to fill the position.

Shares in the company, which earned $1.7 billion in revenue last year, fell 2c to $3.63 in a negative market yesterday.

While he had no specific plans yet for once he leaves the company, Scotland-born Mr Morrice said he hoped to stay in New Zealand if there were interesting opportunities.

"I've been in the role almost seven years and I think that's quite a good innings in this level of job and this type of company," he said.

"I think the time's right for me to think about what I want to do over the next time horizon, and I think from the business's point of view, we've been through some challenging times economically and competitively."

The Warehouse board was forced to defend Morrice's performance last month after speculation about his future, following a sales decline over the key Christmas period and a profit downgrade.

The company has had to contend with disappointing retail sales recently and a declining market share over the longer term.

His biggest challenges - or as he put it, opportunities - coming into the job in 2004 were the need to modernise the New Zealand business and decide what to do about the loss-making Australian business.

"I'm pleased with the fact that we were able to create a very elegant exit from Australia by way of sale of the business back in 2005," he said.

Store formats and products had been modernised for the red sheds and Warehouse Stationary, at a time of big change in the New Zealand retail scene, and the company was now "beginning back in the growth stage," Mr Morrice said.

Since 2004, the size of the non-food retail footprint had grown in New Zealand by about 40%.

The Warehouse's non-grocery market share of 7.6% was down from earlier levels, which the company said was still the largest for a comparable business in any developed market.

The Warehouse has reduced debt significantly, and there have been big changes behind the scenes in areas such as the supply chain and product sourcing.

The company is expanding its physical presence, and also focusing on developing its online business and other developments using smart devices.

Mr Morrice will work closely with his successor and they will agree between them the date of the final handover.

He said Mr Powell had an international reputation as a supply chain expert and was "very much an all rounder".

Originally from Wales,Mr  Powell and his family moved to New Zealand when he joined The Warehouse in 2002.

His roles at the company included interim chief executive of the Australian operations, and supply chain and merchandise planning general manager.

Mr Powell's original training and management experience was in coal mining, before he changed tack in 1986 and joined UK food retailing giant Iceland. He has bachelor degrees in mining engineering and theology, and masters degrees in logistics and business, and has worked in senior positions for companies such as Tesco and Walmart.