Rob Cissell, chief executive of private equity-backed hardware retailer Robert Dyas, is to become chief operating officer of Wal-Mart’s fast-growing Chinese division.
Cissell, who led Kingfisher’s flagship B&Q business until 2005, is expected to play a key role in driving Wal-Mart’s growth in China, as international store groups scramble for a slice of the country’s US$885 billion (£438.25 billion) retail market.
Industry sources said Cissell’s experience was well-suited to the Wal-Mart role. As the retailer’s number two in China, he will concentrate on exploiting existing strengths and his responsibilities will include merchandising, marketing and retail operations.
One source said: “Rob has a range of retail skills. He has wide general merchandise [expertise] from Woolworths and Argos, as well as B&Q, and operational and merchandising strengths.”
Wal-Mart made its Chinese debut in 1996. Its Supercenter stores have driven growth in the country – there are now 97 – and in February last year it took a 35 per cent stake in Trust-Mart, which runs 101 hypermarkets. An eventual acquisition of Trust-Mart is likely.
International store groups are increasingly targeting big emerging economies as their domestic markets mature.
Retailers such as Carrefour and Auchan already have established powerful positions in China. Tesco launched in the country in 2004 after creating a joint venture with local hypermarket operator Hymall and is now opening Express convenience stores there. Other store groups intend to expand there, including Marks & Spencer, which is likely to open in Shanghai later this year.
Planet Retail global research director Bryan Roberts said Wal-Mart is well-placed for growth in China. He said: “It’s still a highly regionalised market. There’s a lot of potential upside left in store openings and there are likely to be more acquisitions.”
Cissell, who spent 11 years at Kingfisher, was shifted sideways at B&Q in 2005 after being blamed for sliding sales. He quickly moved to Robert Dyas, which was bought by Change Capital for£61 million in 2004.
Cissell is the second well-known British retailer to move abroad this year. Former Halfords boss Ian McLeod left in February to run Australian retailer Coles’ supermarkets.
Industry sources said Cissell was appointed to the Wal-Mart role by headhunter Heidrick & Struggles. No comment was available from Cissell, Change Capital, Wal-Mart or Heidrick.
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