Coles Wheels Out Us Big Gun For Review
Sydney Morning Herald
Tuesday November 21, 2000
Shareholders in Coles Myer may get some idea on the future of their discount card early next month when the company provides an update on its operations.
Coles chief executive Mr Dennis Eck said yesterday he would be giving a ``progress report" in December, focusing mainly on the ailing Target stores, and at the same time wheeling out the retailer's newest executive import.
Mr Eck said yesterday that Mr Warren Flick, the former president and chief operating officer at Kmart in the US, had been made chief operating officer of Coles' apparel & home and Myer Grace Bros businesses.
Mr Flick was brought to Australia in August to review Coles's non-food businesses chiefly Target and has decided to stay, a path closely following Mr Eck's own arrival at the helm of Coles, only he reviewed the food operations.
Mr Eck said, however, there was no plan for Mr Flick to succeed him and existing executive team members were still in contention to replace him when his contract ran out.
Mr Flick left Kmart in 1997 with a degenerative neck condition, although Mr Eck said that had now been treated.
He not only has discount-store experience but spent several years at US department store group Sears in the early 1990s when it was being revived.
He is also a director of Paxar Corp, a US listed computer group servicing manufacturers and retailers, which adds further to his attraction for the increasingly e-enabled Coles.
Mr Eck said Mr Flick had travelled widely and consulted with management at Coles before presenting his report to the board.
He said there were no radical recommendations in the report but it did confirm Coles' existing view that the company's customers know what they expect from the brand-name chains and would shop elsewhere if Coles did not meet those expectations.
Mr Flick's role will be to ensure Target falls back into line, and he will participate in the December briefing of analysts and media.
Coles shares fell 2c to $7.84.
© 2000 Sydney Morning Herald
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