Morrice: I plan to quit this year

Ian Morrice won't elaborate on his plans and says his focus is on running The Warehouse. Photo / Natalie Slade

The Warehouse chief executive Ian Morrice has confirmed he is planning to resign this year.

But in a statement yesterday, the retailer's chairman Keith Smith hit out at media speculation that Morrice was facing the axe after a drop in sales over the Christmas period.

"The board is comfortable with Ian's performance and has not met to discuss this with reference to recent trading results," Smith said, adding that no decision had been made over Morrice's retirement from the firm.

News service BusinessDesk on Friday reported "several investment sources" as saying rumours were rife Morrice would be "shown the door".

Morrice told the Business Herald he was disappointed such speculation had been reported.

"Who wouldn't be disappointed with speculative reports that have no foundation?"

Morrice said he indicated to the board last year - during an annual discussion over his tenure - that he wanted to leave the retailer in 2011.

Asked what his plans were after leaving The Warehouse, he said he didn't have any.

"You don't [make plans] when you're in a role like this - you see out the role," Morrice said. "My focus at this point is to continue to deliver very positive results for The Warehouse Group and its shareholders."

The Warehouse reported a 2.7 per cent drop in sales for the two months ending January 2 compared with the same period last year.

Smith said the results were disappointing but they should be viewed in the context of the challenging trading conditions all retailers experienced over that period.

He said The Warehouse addressed succession planning as a part of its normal business. "This has been one of Ian Morrice's objectives which is discussed with myself as the chair regularly."

Smith said an announcement on the chief executive's replacement would be "made in due course, as and when the matter is determined".

Morrice would not be drawn on who his successor might be.

The controversy hasn't hurt the company's share price, which closed up 3c at $3.59 last night.

Morrice joined The Warehouse on a three-year agreement in 2004, the year before it pulled out of its ill-fated foray into the Australian retail market.

The Warehouse reported a 2.8 per cent fall in revenue to $1.7 billion in the year to last August.

Morrice was the second most highly paid executive in last year's Business Herald Executive Pay Survey, behind Telecom's Paul Reynolds.

The $3.8 million salary package he received in 2009, which included $1.2 million in performance pay, was a 77 per cent increase on the previous year.

Morrice received a salary package worth $2.8 million last year, according to The Warehouse's latest annual report.

IAN MORRICE

* Chief executive, The Warehouse

* Aged 50

* Born in Kirkwall, Orkney Islands, Scotland.

* Began his retail career in 1978 as a trainee manager with the UK electronics chain Dixons Stores Group, staying with the firm until 1993.

Went on to hold various positions with other companies, including director of retail for AA Insurance (UK) and managing director of B&Q Warehouse, a British DIY chain.

* Joined The Warehouse in 2004.

* Received a salary package worth $2.8 million last year, according to The Warehouse's annual report.