Co-op boss to quit after just three months

THE Co-operative Group announced today that the chief executive of its troubled food retail arm was quitting after only three months in the job.

The Co-op said Eoin McGettigan, who took up his post in mid-February, was leaving to take up a senior role with an unidentified major European retailer outside the UK. The Manchester-based group said it had appointed former joint managing director of Marks & Spencer, Guy McCracken, to replace Mr McGettigan as the head of its 1,700 food outlets. Mr McGettigan described his decision to leave as 'an extremely difficult' one.

He added that he was sorry not to be able to take part in resolving the 'short-term difficulties' being suffered by the food retail business. The division's annual operating profits fell to £74.5m last year from £122.3m in 2003 after it faced problems in integrating into its business more than 775 stores that it acquired by buying the Alldays, Conveco and Balfour chains.

A spokesman said the Co-op was taking steps to resolve the difficulties and expected an improvement towards the end of this year. Mr McGettigan said he was unable to confirm the name of his new employer or his new role, which is believed to involve a bigger pay package than he would have received at the Co-op.

'It goes without saying, however, that for me personally, and of course my family, it represents an opportunity I just couldn't turn down,' he said.

As well as M&S, Mr McCracken is a former chairman of Duchy Originals, the organic food brand founded by the Prince of Wales. He is currently a director of specialist food and retail advisers the McCracken Rowe Consultancy and a non-executive director of confectionery maker Glisten. He will give up those directorships when he joins the Co-op on 23 May, the Co-op said.

Mr McCracken will take overall charge of the Co-op's food retailing network, which stretches from the Shetland Islands to the South Coast of England and to Northern Ireland. Group chief executive Martin Beaumont described Mr McCracken as 'a very experienced retailer with a strong track record in brand development, building organisational effectiveness and cost management.'

'These will be key to addressing the issues currently facing our food retail business,' he said.