Pacific Retail CEO steps down

By Phil Boeyen, ShareChat Business News Editor

Wednesday 15th November 2000

The head of Pacific Retail Group, Stefan Preston, is stepping down from the job of CEO but will remain a director of the company.

Mr Preston has been at the helm of the listed retail company for just over a year. He was appointed in August 1999 to turn around its poor performance.

PRG's last profit announcement was for the year ended March, which saw a turnaround from an $800,000 loss to a bottom line profit of $7.7 million.

At the time Mr Preston said the turnaround had happened as a result of getting control of expenses, rationalising logistics, better merchandising and more profitable targeted promotions.

The company has also been keen to further growth through acquisition, and just last month announced it was moving into the gift and homeware market through the purchase of the six-store Living and Giving chain in Auckland and Hamilton.

It will no doubt be hoping that venture fairs better than its foray into on-line retailing via the unprofitable FlyingPig, which was sold last week to the on-line division of IT Media.

PRG's share price has also suffered along with the economy during the year, falling from a year high of around $2.00 in April to close yesterday at $1.40.

The next indicator for the company's progress will be its half-year results, due out soon, but given the dull economy, and increasing prices in the whiteware and electronics sector due to the low dollar, it is doubtful that result will be much to crow about.

Pacific Retail has not given any reason for the Mr Preston's departure from the top job, but chairman Maurice Kidd has praised the work he has done for the company.

"Stefan has done a tremendous job restructuring the business and enhancing its performance. We're delighted that he will remain as a director, providing strategic advice to the group."

Mr Preston will be replaced by the group's chief operating officer, Peter Halkett. Mr Halkett first joined PRG as general manager for Noel Leeming and Computer City in 1998.

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