British pet care retailer Pets At Home has announced the conclusion of its three-month search for a new leader, appointing former Waitrose managing director James Bailey as its incoming Chief Executive Officer.
New Leadership for a Challenging Period
James Bailey is set to take up the role on March 30, 2025, succeeding Lyssa McGowan. McGowan resigned from the position in September after a three-year tenure that was marked by a series of profit warnings and declining sales for the company.
Following her departure, the company's chairman, Ian Burke, stepped in as interim executive chairman. He will return to his standard non-executive chairman role when Bailey formally joins the Cheshire-based business in the spring.
A Seasoned Retail Leader Takes the Helm
Bailey brings a wealth of supermarket and retail experience to the role. He served as the managing director of the upscale Waitrose chain for more than five years, departing only in August. His leadership there navigated the significant challenges of the Covid-19 pandemic and the subsequent period of intense food price inflation.
Prior to his time at Waitrose, Bailey built a 20-year career at Sainsbury's, where he held several senior positions. One of his key roles was as the supermarket's grocery buying director.
A Crucial Turnaround Mission
Bailey's appointment comes at a critical juncture for Pets At Home. The company is actively striving to reverse its fortunes after issuing multiple profit warnings. Its most recent half-year results, published in November, painted a stark picture.
While the firm's veterinary arm performed robustly, overall group profits fell by more than a third. The performance of the core retail business was particularly weak, with underlying earnings plunging by a dramatic 84%.
Last month, Chairman Ian Burke warned that "urgent and necessary" actions were required to fix the retail division's problems. A central part of the recovery plan involves significant cost-cutting, with the company disclosing plans to reduce overheads by approximately £20 million.
Commenting on the new appointment, Burke stated: "Following an extensive search process, the board believes James's experience aligns well with the group's ambitions for the coming years. His strong retail leadership skills will support the ongoing focus on improving Pets At Home's retail business, with significant operational and commercial experience leading both stores and online operations."
James Bailey described Pets At Home as "a business I've admired for a long time and one I believe has a very bright future."
His remuneration package includes a base salary of £639,770, plus pension contributions and benefits. He has the potential to earn an annual bonus of up to 170% of this base salary. Furthermore, should shareholders approve a revised compensation framework at the July Annual General Meeting, Bailey could also qualify for additional yearly share incentives worth up to 250% of his salary.
