Woolworths CEO to step down

By Rhys Jones

LONDON (Reuters) - Sweets-to-DVDs retailer Woolworths Group WLW.L said it had asked Chief Executive Trevor Bish-Jones to step down as it unveiled a deterioration in sales and margins for the year to date, dragging down its shares.

Woolworths, one of the most recognised high street names, with more than 800 stores, said this was the right time to seek new leadership for the business.

"The timing was down to the board but this is the sensible moment to make the change. It's entirely amicable and Trevor has a contract which we will honour in full," Chairman Richard North told reporters on a conference call on Wednesday.

Bish-Jones, who has struggled to revive the retailer in six-and-a-half years with the group, will continue in his role for the next three months to enable a search for his successor, which is under way, to be completed.

"Nothing more has happened other than appointing the head hunters and giving them the initial brief but both internal and external candidates will be considered," said North.

Woolworths, battling cut-price competition from supermarkets and online retailers, said like-for-like sales at its high street stores fell 2.2 percent in the first 19 weeks of its financial year, in line with expectations and an improvement on the 3.2 percent slide reported for the year ending February.

The variety retailer said the deterioration was due to cost price pressures and the fact it has been selling more lower margin entertainment products and less higher margin goods and big ticket electrical items.

Panmure analyst Philip Dorgan said he believed there was "a profit warning in the announcement" but added that Woolworths "loses money in H1 and makes all its money in Q4, so there can be no explicit guidance at this stage of the year."