Adairs Appoints Former Country Road Chief Elle Roseby as New CEO Amid Retail Challenges

Adairs Limited (ASX:ADH), Australia’s largest retailer of home furnishings and manchester, has appointed Elle Roseby, former managing director of Country Road, as its new chief executive officer. Ms. Roseby is set to assume the role in January, marking her first ASX-listed company leadership position after a significant career in the retail sector.

Her appointment comes shortly after leaving her position at Country Road, where she was responsible for overseeing both the Country Road and Trenery brands. Country Road, a major player in the fashion industry, had recently been entangled in a series of internal controversies and restructuring efforts. Despite these challenges, Ms. Roseby is credited with doubling sales and quadrupling earnings over her six-year tenure. Her leadership saw an expansion into new product categories like kids' fashion and homewares, while also increasing the average selling prices. Notably, Country Road was the only brand under its parent company, Woolworths Holdings, to post positive sales growth last year.

Adairs operates nearly 200 stores across Australia and includes the brands Focus on Furniture and Mocka, an online-only retailer. The company has faced its own set of challenges recently, with its share price underperforming and consumer spending trends shifting amid economic uncertainty. Adairs’ share price (ASX:ADH) closed at $1.75 on Monday, below its 2015 issue price of $2.40 and well off its peak near $5 in 2021.

Ms. Roseby is stepping into the role at a pivotal time for Adairs. The company is grappling with declining sales and reduced discretionary spending across the retail sector. Outgoing CEO Mark Ronan, who announced his departure two weeks ago, will stay in the position until early January, ensuring a smooth transition. Mr. Ronan is credited with building a strong foundation for the company during his tenure, and Ms. Roseby has expressed her intent to explore growth opportunities once she officially steps into the role.

Adairs has developed a strong reputation within the retail industry, with a loyal customer base and an entrenched loyalty program. The company’s brand identity, combined with its data analytics capabilities, will be key in navigating the current retail landscape. Ms. Roseby has highlighted the importance of understanding customer preferences through the available data, which will guide the company’s future strategies.

Her prior leadership roles include overseeing youth fashion brand Supré under the Cotton On Group, as well as Sportsgirl and department store Myer. Her extensive experience in retail, combined with her success at Country Road, positions her as a strong choice to lead Adairs through its next phase. Ms. Roseby emphasized the importance of cultural alignment and the support she has received from Adairs’ board, which she believes shares her values and commitment to fostering positive organizational change.

Adairs’ history as a retailer stretches back to its founding in 1918, with its first store opening on Chapel Street in Victoria. Retail magnate Brett Blundy, who invested in the company in 2007, played a pivotal role in its development, later selling the business to private equity firm Catalyst Investment Managers, which floated Adairs on the ASX in 2015.

The company’s interim chairman, Trent Peterson, has also underscored Ms. Roseby’s deep retail experience and her suitability for the role. Mr. Peterson himself played a key role in taking Adairs public and is currently seeking to appoint a permanent chairman, following the sudden departure of former interim chairwoman Kate Spargo last week. The leadership changes at Adairs reflect the company’s strategic efforts to strengthen its position in a competitive and evolving retail market.

As Adairs navigates these changes, the retail landscape continues to face a variety of challenges, including shifting consumer behaviors and broader economic pressures. The company’s ability to leverage its existing strengths, such as its strong store network and robust brand reputation, will be critical in maintaining its market presence. Additionally, Ms. Roseby’s experience in managing cultural shifts and driving financial growth in previous roles suggests that Adairs is positioning itself for a potential revitalization under her leadership.