New Warehouse Group chief executive Mark Stirton joined the company in April last year.
The Warehouse Group has appointed its chief financial officer Mark Stirton to the role of group chief executive after a year-long search to fill the role.
Stirton, who joined the company in April last year, will head the group from August 1.
Stirton has been assisting interim group chief executive John Journee since the departure of former CEO Nick Grayston, who stepped down immediately in May last year after a difficult period for the discount retail chain.
Before joining The Warehouse Group (TWG), Stirton was chief financial officer at Mr Price Group, one of the largest retailers in South Africa with more than 3000 stores.
“After a comprehensive search, we are delighted that Mark has accepted the group CEO position,” said Warehouse Group chair Dame Joan Withers.
“Mark’s understanding of TWG, his energy, drive to modernise, extensive retail experience and proven ability to deliver on the execution of strategy make him the ideal leader to accelerate the improvement programme that we have under way.”
Withers thanked Journee for taking on the role at a difficult and challenging time while making immediate and effective changes to the organisation’s operating model, strategy, and cost structure during his time as interim chief executive.
Stirton said he felt privileged to be assuming the key leadership position in one of New Zealand’s most iconic businesses.
“The Warehouse is a much-loved brand and plays an important role in Kiwis’ lives. We need to build on our progress made to date to deliver further value for our customers, team members, and our shareholders,” he said.
“Leading this transformation with our teams will be an honour, and I am committed to driving innovation, operational excellence, and enhancing our customers’ experience of our brands and products.”
Withers told the Herald she was personally delighted that the search was over, and knew the whole board felt the same way.
“We know this is probably the most important job that we do as a board is finding and appointing the best possible CEO for the role,” Withers said.
“I’m happy because we’ve got a great outcome and we’ve been through an incredibly thorough and rigorous process.
“So it’s not like we’ve just anointed Mark as an internal candidate, we’ve actually benchmarked him against the best, and he’s come through.”
Withers said that once Grayston resigned, a turnaround plan had to be enacted before beginning the search for a permanent replacement.
The real search for a replacement began late in the 2024 calendar year, although Stirton’s abilities were being monitored since he became chief financial officer.
“Effectively, he’s had a one-year interview process. He’s not only got the responsibilities for the financial function here, but also now for IT, so he’s handled a very, very big job.
“We’ve got the confidence in his performance, and now we’ve come to an outcome where we’ve assessed some very high quality aspirants for the role against him and we’re absolutely delighted.”
While the other applicants for the role would remain private, Withers said she had been impressed with Stirton from the beginning, with the past year only reinforcing that belief.
Part of what made Stirton the correct choice for her was his technological intelligence and literacy, noting that he does have some specialisation in artificial intelligence.
As to whether shareholders will be impressed with the board appointing an internal candidate after such a tumultuous period, Withers pointed to her experience as chair in two other companies.
As chairwoman of Auckland International Airport in 2012, the company completed a global search only for internal candidate Adrian Little to take the job with much success. While chairwoman of Mighty River Power in 2014, internal candidate Fraser Whineray was appointed once again to a positive outcome.
For her, Stirton’s energy and passion for retail meant a pair of safe hands, particularly considering she will retire from the company’s board in November.
“The legacy for me is not quite as I’d want it to be in terms of the share price. For someone who’s lived many years doing governance, creating shareholder value is incredibly important for me.
“[John Journee] JJ’s done an enormous amount of heavy lifting to get the company back where it needs to be, and Mark will take that forward.
“I’m confident that as far as that part of the job’s concerned we’re in a great place.”
This month, the group reported total sales for the third quarter rose 2.2% to $710.5 million, compared with the same period last year.
Group gross profit was $223.3m, down 2% on the previous period.
When Grayston stepped down, shares in the Warehouse Group were trading at $1.20, having dropped nearly 30% over 12 months.
Yesterday, the Warehouse Group shares closed at 91c.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.