managing director of Smiggle, which is owned by Premier Investments, since 2012, and during his tenure, the brand has grown from a $78.3 million business to a $319.8 million global retailer. Earlier this year, Premier Investments chairman Solomon Lew announced plans to spin off Smiggle into a separate ASX-listed entity.  The company is also demerging the popular pyjamas chain Peter Alexander. It also owns the fashion brands Just Jeans, Portmans, Jacqui E, Dotti and Jay Jays. Cheston’s move to Lovisa is notable given the jewellery chain is owned by Australian billionaire Brett Blundy, who recently appointed Mark McInnes, the former CEO of Premier Retail, to the newly formed role of global chief executive of retail and consumer at his investment firm, BBRC.  BBRC also owns the discount department store chain Best & Less and has stakes in footwear giant Accent Group and fashion brand Dissh, among others.  McInnes left Premier Retail in January 2022 and had been on ‘gardening leave’ for two years.  Former JB Hi-Fi CEO Richard Murray was initially appointed as McInnes’ replacement at Premier, but he stepped down last September when the company announced it was exploring a spin-off of Smiggle and Peter Alexander.  Murray is now the CEO of Metcash’s Total Tools, and Premier’s long-standing CFO John Bryce has taken on interim CEO duties at the company.  What do these leadership changes say about Blundy’s plans to grow his retail portfolio, and perhaps more importantly, what do they mean for the future of Premier?  Prime position Blundy has not made any further comment on the appointments beyond a statement to the ASX, while a spokesperson for Premier Investments said the company remains well-positioned in its leadership structure and will work through a succession plan in the months ahead. Bernie Brookes, the owner and executive chairman of Marquee Retail Group, which owns Colette by Collette Hayman and The Daily Edited, told Inside Retail that “these losses would be felt at Premier”, especially in the current economic climate. “Quality and experienced retailers are critical to a business. With strategy to implement and execution during difficult retail trading conditions of utmost importance, it is vital that experience and focussed leadership is at hand,” Brookes said.  The impact of the departure of a senior leader depends, of course, on the strength of the individual business and the quality of the executive team that remains in place.  According to Brookes, the successes and failures of Woolworths and Coles over the years can be attributed to changes in leadership.  “A good leader – experienced, focused and customer-led can make a difference,” he said. “Premier has built a world-class team of people across all areas and although the loss of a leader in one division (Smiggle) can be significant I do not doubt that the quality of executives will hold the company in good order.” Growth opportunities For Lovisa and BBRC more broadly, the recent appointments of Cheston and McInnes come as the business enters a period of global expansion. “Brett is a smart retailer and knows that quality people can give you quality results. Both John Cheston and Mark McInnes have tremendous track records in achieving results and expanding businesses,” Brookes said. Cheston’s resume provides ample reason why BBRC would want him to lead Lovisa’s next phase of international expansion, especially with a focus on global and local markets. After working for UK supermarket retailer Marks & Spencer for 17 years, where he became the Asia Pacific managing director, Cheston became the CEO of Country Road in 2010. In 2012, Cheston was appointed as the MD of Smiggle, where he executed the first UK store opening in 2014 and grew that to 132 stores by 2018 across the UK and Ireland. Brookes said that Lovisa’s appointment of Cheston, “is a great example of securing quality people to run a business. With the departure of [current Lovisa CEO] Mr Herrero, this will ensure a continuity of the international rollout.” US-based Herrero succeeded Shane Fallscheer, a co-founder and former managing director of Lovisa. Herrero was appointed in October 2021 and tasked to explore and execute store openings across global markets in the wake of a slowed-down rollout due to the Covid-19 pandemic. At the time Fallscheer told Inside Retail, “Victor is an exceptional retailer with proven achievements in global markets and is the ideal person to continue to take Lovisa forward.” Lovisa had 544 stores worldwide at the end of FY21 and currently has over 700 across 30 countries. Long-term vision As Brookes noted, the leadership changes at Premier and BBRC come at a time of worsening retail conditions, which have seen several business collapses and heavy discounting as those left standing seek to clear inventory and generate cash. Success in the sector is impacted by many factors, but having the right crew and captain at the helm is key to achieving the best results regardless of conditions. According to McKinsey & Company’s Retail reset: A new playbook for retail leaders, the retail sector has experienced more disruption in the past five years than it has collectively in the 25 prior. It suggests 70 per cent of the industry’s value is created by the top decile of retailers and that one in five retailers posted a negative profit between 2015 and 2023. Deloitte research found that 21 per cent of a consumer goods company’s equity value was ascribed to its senior leadership.