Richard Greenbury
Encyclopedia
Sir Richard Greenbury was chairman and chief executive of the British
retailer Marks and Spencer from 1988 to 1999. During his tenure the company
continued to grow until its profits peaked in 1997 and 1998, when it was the second most profitable retailer in the world after Wal-Mart
, and the ninth largest company in Britain. After resigning as executive chairman, Peter Salsbury succeeded him.
and abandon sport; opting to start earning at the age of sixteen and missing out on a university education. Just before his seventeenth birthday, Greenbury took a modest job at Lilywhites
.
, and he was taken under the wing of the founding father’s son. Mark's dubbed Greenbury “Big Fellah”, and soon moved him to head office as a trainee merchandiser and personal assistant to his son in law.
It was in men’s knitwear
where Greenbury made his name in the early 1960s, shortly after his marriage to first wife Siân Hughes (1959). As noted by Marks, ‘Rick’ as he soon became known, was a retailer through and through. Spotting the trend towards casual menswear Greenbury formed a strong friendship with Harry Djanogoly, who ran the knitwear company Nottingham Manufacturing, and transformed the then unknown aisle in every Marks and Spencer store into a profits power house for the company. This reputedly got Djanogoly his KBE
and Greenbury his promotion.
By 1972, Greenbury had been made the youngest director in the company’s history, only twenty years after being welcomed by the business. Then, at the age of forty-one, Greenbury was made a managing director, and by 1978 he had worked in every area of the business; including food, property, and, of course, clothing. In 1984, shortly after becoming chairman, Derek Rayner
decided it was time to outline his immediate successor, and, in 1988, Greenbury took his place as chief executive. In 1991, he was promoted again, becoming executive chairman, in keeping with Marks and Spencer's business traditions.
Despite later criticism, when the company smashed the £1 billion profit barrier in 1997, the City sang Greenbury's praises; although the impact of his tenure became the subject of intrigue in the aftermath of the downturn. For every year that Greenbury was in charge, Marks and Spencer held more than twice the clothing market of any other high street name, and even after the crash, and Greenbury's departure, they remained the only retailer holding over 10% of the market.
acquisition, which reportedly cost several million. After stepping down, Greenbury went on to serve as a director with ICI
, Zeneca
, C&G, Game
, British Gas, Lloyds TSB
, and as a member of the supervisory board at Philips
. He retired in 2010. Though his tenure has been remembered for the downturn in profits and share prices that followed his departure, it was under Greenbury that Marks and Spencer undertook its greatest international expansion, had the greatest number of employees, stores and floor space, and the highest share prices, share of the market, and pre- and post-tax profits of any retailer in Europe; and, excluding companies operating under multiple names, the world.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
retailer Marks and Spencer from 1988 to 1999. During his tenure the company
Company
A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...
continued to grow until its profits peaked in 1997 and 1998, when it was the second most profitable retailer in the world after Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, and the ninth largest company in Britain. After resigning as executive chairman, Peter Salsbury succeeded him.
Early life
Greenbury was born in Carlisle and educated at Ealing County Grammar School in London. As a young man he claimed to have been, “The most caned boy in school”, an achievement that he suggested had taught him, “The importance of discipline.” Although academically able, at over six foot Greenbury's real enthusiasm lay in playing sport, which he excelled at. He played football for his school's 1st XI, and later at county level, while playing tennis as well. However, after his mother contracted cancer, Greenbury felt obliged to leave school with only six O-levelsOrdinary Level
The O-level is a subject-based qualification conferred as part of the General Certificate of Education . It was introduced as part of British educational reform in the 1950s alongside the more in-depth and academically rigorous Advanced Level in England, Wales and Northern Ireland A-level...
and abandon sport; opting to start earning at the age of sixteen and missing out on a university education. Just before his seventeenth birthday, Greenbury took a modest job at Lilywhites
Lilywhites
See also Lilywhites of Triangle near Halifax. Lilywhites is a nickname of the following:British association football clubs:* Berkhamsted Town* Cambridge City F.C.* Clachnacuddin F.C....
.
Marks and Spencer
Greenbury's stay at Lilywhite’s was short lived. He later accepted a management trainee position at Marks and Spencer, who fortunately did not require A-levels for their programme. His hard work was soon recognized by Simon, Lord MarksSimon Marks
Simon Marks, 1st Baron Marks of Broughton , was a British Jewish businessman.Marks was born in Leeds and educated at The Manchester Grammar School. In 1907 he inherited a number of "penny bazaars" from his father, Michael Marks, which had been established with Thomas Spencer...
, and he was taken under the wing of the founding father’s son. Mark's dubbed Greenbury “Big Fellah”, and soon moved him to head office as a trainee merchandiser and personal assistant to his son in law.
It was in men’s knitwear
Knitted fabric
Knitted fabrics is the third major class of fabric, after woven and nonwoven fabrics.-Elasticity, thickness and warmth:Compared to the other two classes, knitted fabrics are much more elastic, which accounts for their historical use in stockings and other clothing that requires changes in shape...
where Greenbury made his name in the early 1960s, shortly after his marriage to first wife Siân Hughes (1959). As noted by Marks, ‘Rick’ as he soon became known, was a retailer through and through. Spotting the trend towards casual menswear Greenbury formed a strong friendship with Harry Djanogoly, who ran the knitwear company Nottingham Manufacturing, and transformed the then unknown aisle in every Marks and Spencer store into a profits power house for the company. This reputedly got Djanogoly his KBE
Order of the British Empire
The Most Excellent Order of the British Empire is an order of chivalry established on 4 June 1917 by George V of the United Kingdom. The Order comprises five classes in civil and military divisions...
and Greenbury his promotion.
By 1972, Greenbury had been made the youngest director in the company’s history, only twenty years after being welcomed by the business. Then, at the age of forty-one, Greenbury was made a managing director, and by 1978 he had worked in every area of the business; including food, property, and, of course, clothing. In 1984, shortly after becoming chairman, Derek Rayner
Lord Derek Rayner
Derek George Rayner, Baron Rayner was a chairman and chief executive of Marks & Spencer plc , one of the major British retailers who revived and rapidly expanded the company in the 1980s...
decided it was time to outline his immediate successor, and, in 1988, Greenbury took his place as chief executive. In 1991, he was promoted again, becoming executive chairman, in keeping with Marks and Spencer's business traditions.
Despite later criticism, when the company smashed the £1 billion profit barrier in 1997, the City sang Greenbury's praises; although the impact of his tenure became the subject of intrigue in the aftermath of the downturn. For every year that Greenbury was in charge, Marks and Spencer held more than twice the clothing market of any other high street name, and even after the crash, and Greenbury's departure, they remained the only retailer holding over 10% of the market.
New leadership
In 1999, Greenbury's career as a CEO and chairman came to an end. He bore criticism as he stood down. One journalist would later impart; "Life has been unfair to Sir Richard, he had forty years of unmitigated success followed by one poor one; and that's the one he'll be remembered for." Despite this, Greenbury talked openly about the problems with the leadership succession that ultimately caused a slump at the retailer, as the four possible candidates for the job engaged in a bitter power struggled that stimulated headlines such as "Sparks Fly at Marks", in a Channel 4 documentary. The downturn in Marks and Spencer's fortunes has also been attributed to, in part, the costly LittlewoodsLittlewoods
Littlewoods is the name of a former retail and gambling company founded in Liverpool, Merseyside, England by John Moores in 1923.It started as a shopping catalogue company, processing orders by post in the early 1970s. In 1981, it expanded to a call centre, processing orders via telephone. At its...
acquisition, which reportedly cost several million. After stepping down, Greenbury went on to serve as a director with ICI
Imperial Chemical Industries
Imperial Chemical Industries was a British chemical company, taken over by AkzoNobel, a Dutch conglomerate, one of the largest chemical producers in the world. In its heyday, ICI was the largest manufacturing company in the British Empire, and commonly regarded as a "bellwether of the British...
, Zeneca
Zeneca
Zeneca Group PLC was a multinational pharmaceutical company headquartered in London, United Kingdom. Zeneca was formed in June 1993 by the demerger of the pharmaceuticals and agrochemicals businesses of Imperial Chemical Industries into a separate company listed on the London Stock Exchange.In 1999...
, C&G, Game
Game
A game is structured playing, usually undertaken for enjoyment and sometimes used as an educational tool. Games are distinct from work, which is usually carried out for remuneration, and from art, which is more often an expression of aesthetic or ideological elements...
, British Gas, Lloyds TSB
Lloyds TSB
Lloyds TSB Bank Plc is a retail bank in the United Kingdom. It was established in 1995 by the merger of Lloyds Bank, established in Birmingham, England in 1765 and traditionally considered one of the Big Four clearing banks, with the TSB Group which traces its origins to 1810...
, and as a member of the supervisory board at Philips
Philips
Koninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
. He retired in 2010. Though his tenure has been remembered for the downturn in profits and share prices that followed his departure, it was under Greenbury that Marks and Spencer undertook its greatest international expansion, had the greatest number of employees, stores and floor space, and the highest share prices, share of the market, and pre- and post-tax profits of any retailer in Europe; and, excluding companies operating under multiple names, the world.
Statistics on Richard Greenbury's tenure as Chief Executive (1988-1998 completed financial years)
- Number of UK stores: 1985 (before appointment) - 283; 1998 - 300
- Sales: 1985 - £3,213,000,000; 1998 - £8,343,300,000
- Pre-tax profits: 1985 - £303,400,000, 1998 - £1,168,000,000
External links
- An article on Judi Bevan's 'The Rise and Fall of Marks & Spencer' which documents in detail Sir Richard Greenbury's life
- A short biography of Sir Richard Greenbury's life in business
- Articles from Harvard Business on Sir Richard Greenbury's tenure with Marks and Spencers
- A copy of the Greenbury Report over which Sir Richard Greenbury presided
- Sir Richard Greenbury