Ian McLeod has agreed to extend his contract as MD of Coles, Australia’s second-largest retailer.
The Scot joined Coles from UK auto parts retailer Halford in 2008 on a five-year fixed contract.
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He was hired by Australian conglomerate Wesfarmers, which had acquired Coles a year earlier, to turn around the fortunes of the retailer. Announcing McLeod’s new contract today (29 May), Wesfarmers MD Richard Goyder praised Coles’ performance under McLeod’s stewardship.
“Ian and his team have achieved outstanding results over the past four years, delivering at Coles a sustained period of industry out-performance in both sales and profit growth,” Goyder said. “After June 2013, Ian will move to a new employment contract consistent with other senior executives within the Wesfarmers Group, which includes a six month notice period.”
Coles’ performance has improved under McLeod. In its last financial year, which ran until the end of June, EBIT increased by over 21% on the back of sales that rose faster than arch-rival Woolworths Ltd.
Sales at Coles have continued to increase at a faster rate than at Woolworths. In the first half of Coles’ current financial year, which comprised the six months to the end of December, it saw its revenue rise 7.2% after a 4.4% increase in comparable-store sales.
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By GlobalDataWoolworths Ltd reported a 4.3% increase in sales from its Australian food and liquor division for the 27 weeks to 1 January. Comparable-store sales climbed 1.5%.
