The Pharmaceutical Journal Vol 263 No 7070 p739
November 6, 1999 Business

Steve Russell to become chief executive at Boots

Mr Steve Russell is to become chief executive of the Boots Co Plc with effect from April 1, 2000, the company announced on November 2. Mr Russell is currently joint group managing director of the Boots Co and managing director of Boots the Chemists Ltd. Mr Russell will succeed Lord Blyth of Rowington, the current executive chairman of the Boots Co, who is retiring with effect from the company's annual general meeting on July 27, 2000. Mr John McGrath, currently chief executive of the drinks company Diageo Plc, is to take over as non-executive chairman of Boots at the AGM. Mr Russell's rival for the top job, Mr David Thompson, the other joint group managing director, will retain his position as finance director and will also be appointed deputy chief executive from April 1, 2000.

Steve Russell: unworried about price war

Mr Russell joined Boots as a graduate trainee in 1967. He was appointed marketing director of Boots the Chemists in 1987 and, subsequently, managing director of Do It All in 1992. He returned to Boots the Chemists as managing director in 1995. His successor as managing director of Boots the Chemists is to be Mr Ken Piggott. Mr Piggott has been managing director of Halfords since 1997.
One of Mr Russell's first tasks will be to rebuild the City's confidence in the company. Boots's share price has fallen from a high of 1,053p at the beginning of the year to 628.5p on November 2, mainly because of fears of a price war following Wal-Mart's acquisition of Asda earlier this year. Boots was due to present its half year results on November 4, after The Journal went to press.
In an interview published in the Independent's business review section on November 3, Mr Russell claimed to be unworried about a possible price war.
"We profoundly believe consumers in the health and beauty market are looking for a lot more than price," he said.
He said that Boots would concentrate on promotional offers, such as three-for-twos, rather than straight price cuts.