Salsbury stands down at M&S

Marks & Spencer will announce tomorrow that Peter Salsbury, its chief executive, is to stand down after just 20 months in the job. In a surprise move, his job will be taken by Luc Vandervelde, the Belgian retailer who came in as chairman earlier this year.

Marks & Spencer will announce tomorrow that Peter Salsbury, its chief executive, is to stand down after just 20 months in the job. In a surprise move, his job will be taken by Luc Vandervelde, the Belgian retailer who came in as chairman earlier this year.

He will become both chairman and chief executive, a move that is almost certain to cause controversy in the City. M&S's previous chairman, Sir Richard Greenbury, was also chief executive, and his failure to delegate power led to a bitter struggle between Mr Salsbury and Keith Oates, the head of M&S's financial services business, over who would be chief executive.

Mr Salsbury's decision to resign is said to be "his own". The timing coincides with the appointment of Roger Holmes, the head of Kingfisher's electric retailing side, as chief executive of UK retail at M&S.

However, Mr Holmes will not be installed as heir apparent, not least because M&S has had some trouble persuading Kingfisher to release him from his 12-month contract.

Sir Geoff Mulcahy, chairman of Kingfisher, said: "Roger does have a contract, and there is overlap between us and M&S in children's clothing, some adult clothing and homewares."

Sir Geoff is understood to have offered Mr Holmes the chief executive role at the group's general retailing side - which includes Woolworth, Superdrug and Big W: this business is being demerged from the electrical retailing and DIY operations.

When Kingfisher announced the demerger on Wednesday, it was unable to name a chief executive for that business, though it filled the post on Friday with Martin Toogood, who runs the B&Q business.

City analysts predicted that the general retailing side might not actually be floated. "I expect a private equity firm to make a bid that will be too good for Kingfisher to reject," said one retailing expert.

Sir Geoff said he had not received any approach from private equity firms about the general retailing business.

Speculation about the future of Mr Salsbury, who is just 51, had fluttered around retailing and the City for some months. In the summer M&S admitted it had hired Whitehead Mann, the head-hunters, to find a new head of UK retailing.

The appointment of Mr Holmes, 40, to that role, which will also be confirmed tomorrow, has led many in the City to see him as the future chief executive of M&S. However, he has no experience in either food or clothing retailing, the two mainstays of M&S.

The group has been suffering from tough trading conditions and declining profits for some time. Its shares have collapsed in value, closing on Friday at 210.25p, just 2.75p above their 20-year low.