Richard Pennycook has shocked the high street by standing down as chief executive of the Co-op Group on the day Aldi displaced it as the UK’s fifth biggest grocer. He will be succeeded by Steve Murrells, chief executive of the Co-op’s food business.
Mr Pennycook is credited with rescuing the group from collapse in 2013 after its bank discovered a huge hole in its balance sheet.
He had indicated he would stay to lead its so-called “Renewal Phase” after selling a number of businesses to cut debt and focus on its core grocery business.
The Manchester-based mutual said Mr Pennycook wanted to pursue a “portfolio career” with a number of directorships. He took a big pay cut this year at his own request, arguing that the hard work of rescuing the Co-op was done. He became chief executive initially on a temporary basis.
It is a much smaller group than he inherited, having dropped its farms and pharmacy chain. Its main business now are funeral care, legal and insurance.