David Jones’ owner hires Levi’s US boss to replace Ian Moir as CEO
David Jones’ South African owner Woolworths Holdings has appointed Roy Bagattini as its new CEO, cheering investors keen for a fresh pair of hands to tackle the department store’s struggling business.
The Levi Strauss executive replaces Ian Moir, who will step down in February after nine years at the helm during which he oversaw the group’s digital transformation and paid a big premium for David Jones to bulk up in Australia.
Moir’s departure from the top job at Woolworths was widely anticipated by analysts as his $US2 billion acquisition in 2014 of David Jones has weighed on the group, which has had to write down its value twice and pump in millions of dollars to refurbish its Elizabeth Street store in Sydney, disrupting sales.
Bagattini, 56, has been running Levi Strauss’ business in the US for more than three years. He previously served as the denim brand’s Asia Pacific, Middle-East and Africa president, and also worked for Denmark-based beer producer Carlsberg and South African-founded brewer SABMiller.
Woolworths shares jumped more than 9 per cent in Johannesburg on news of his appointment.
Moir will work closely with Bagattini to facilitate a transition and will continue in his role as acting CEO of David Jones, the company said.
Investors often criticised that Moir overpaid for the department store chain “and when it wasn’t working he continued to invest in it”, Sasfin Wealth senior equity analyst Alec Abraham said.
“You’ve got fresh eyes with no vested interest in any particular region or business that can arguably have an objective review of the business and make objective decisions on where it should be going in future,” he said.
David Jones has been struggling with subdued consumer spending in Australia’s slowing economy and pressures faced by department store operators as shoppers switch to online retailers such as Amazon.com or fast fashion brick-and-mortar stores like Zara.
“Roy has extensive operational, management and turnaround experience in global consumer and retail markets, which will prove invaluable as we continue to navigate the structural changes taking place in the retail sector and the challenges particular to our group,” Woolworths Chairman Hubert Brody said.
Reuters
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