Marks & Spencer's Rose faces tougher challenge

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In past years he's experienced a level of adulation more usually reserved for entertainment stars.

But while investors and analysts once rushed to congratulate him on the turnaround of the storied chain and laughed readily at his presentation patter, together with the invariable reference to his wearing only M&S apparel right down to his underwear, times have changed.

In only a few months, the sheen has come off the British retail sector's shiniest turnaround, hurt by the worsening consumer downturn and a corporate governance row.

Rose's fans aren't dismissing his prospects of winning through just yet. But many think he faces an uphill struggle:

"Stuart has tons of experience in business at tough times, I wouldn't write him off but it is a challenge," said Lorna Hall executive editor of British apparel industry bible Drapers.

Rose, 59, has all the retail industry experience one might wish for. He joined M&S as a management trainee in 1972, leaving for the Burton Group in 1989 and returning as M&S CEO in 2004 after stints as chief executive of catalogue retailer Argos, cash-and-carry chain Booker and clothing group Arcadia.

Parachuted into M&S in a crisis, Rose fought off a hostile takeover approach from Topshop owner Philip Green and went on to stage a feted turnaround, helped by a multi-million pound advertising campaign and a cultish ability to rally staff.

But his vast experience in the sector may not be enough. Weakening shopper morale due to rising living costs, in particular among over-30s women, the demographic group long seen as the M&S heartland, has introduced doubts about a sustained recovery at Britain's largest clothing retailer. The company posted its worst quarterly performance in two years in January and doubts were fuelled by a drop in like-for-like first-quarter sales at rival Next recently.

Tony Shiret, an influential retail industry analyst at Credit Suisse, is one of the doubters. In a note published this week he said it was "time to get real" about the prospects for the 125-year old brand ahead of its annual results on May 20.

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