Pennycook to step down as Co-op CEO

Richard Pennycook is to step down as group chief executive of the Co-operative and will be succeeded by Steve Murrells, who is chief executive of the Co-op’s food business.

Pennycook, who joined the Co-op on an interim basis at the height of its crisis in 2013, will step down on March 1 after a short transition to Murrells, the group said in a statement.

Pennycook was finance director before taking over as chief executive in 2014 when the former boss Euan Sutherland resigned after 10 months in the job.

In April, Pennycook took a volutary pay cut from £1,250,000 to £750,000, after he said the business was back “in calmer waters”.

He will now return to a planned portfolio career but will act as an adviser to the group, primarily focusing on its relations with the Co-operative Bank.

Pippa Wicks, currently chief operating officer of the group, becomes deputy chief executive with responsibility for delivery of the remaining aspects of the group’s turnaround plan.

Jo Whitfield who is currently finance director of our food business will become chief executive of Co-op Food on an interim basis.

Richard Pennycook said: “Leaving the Co-op was always going to be hard, but the time is right. The CEO who is to lead the Renewal phase in 2018 has to be the CEO who builds the plan in 2017. In passing the baton to Steve, I leave safe in the knowledge that the Co-op will be taken forward by a leader who shares our vision of what can be achieved in the future. Steve has a terrific team around him and an organisation that has rediscovered its self-confidence. I could not be more proud of them all and wish them great success in the future.”

Steve Murrells said: “I take over at one of the most exciting times in our 150 year history. All the signs are that consumers are looking for a different type of business, one that looks after them and their communities and I truly believe that the Co-op is that business. We have amazing colleagues and a growing and more engaged membership. Now is our time and we are ready to show the country that good businesses that do good things offer a better future for us all.”

Allan Leighton, chairman of the Co-op, said: “Richard Pennycook saved our Co-op. In three short years he has rescued and rebuilt our business and restored pride to our 70,000 colleagues and 4.5 million members. We owe Richard a huge debt of gratitude and his place in Co-op history is secured.

“We are fortunate to have Steve as our new group CEO. He is a natural co-operator, a great leader and has already done so much to return our Co-op to its former glory. Steve has transformed our food business and put it back at the heart of communities across the country. His leadership has seen our Co-op consistently outperform the market in food and he is the right and unanimous choice to now take the whole group forward for the next phase of our transformation.”