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Marks and Spencer Group PLC (MKS.LN) Monday said it has appointed HMV Group PLC's (HMV.LN) Robert Swannell as chairman of the clothing, homeware and food retailer, one of the most sought-after and high-profile non-executive roles in the U.K., replacing Sir Stuart Rose.

The country's biggest clothing retailer by volume said Swannell will join the board Oct. 4 as a non-executive director, before succeeding Rose as chairman Jan. 4 next year, when Rose will leave the group.

Swannell, 59 years old, is currently chairman of HMV Group, owner of the music retail chain and Waterstones bookshops. He is a veteran investment banker who was formerly chairman of Citigroup Inc.'s (C) European investment bank and vice-chairman of Citi Europe.

He was instrumental in advising M&S in its 2004 defense against a GBP9.1 billion takeover bid from billionaire entrepreneur Philip Green, head of Arcadia Group PLC (UD-ACA).

Swannell is also a non-executive director at property group British Land Co. PLC (BLND.LN) and venture capital firm 3i Group PLC (III.LN).

"Robert will be an excellent Chairman for us. He has strong complementary skills and I am very much looking forward to working with him," M&S Chief Executive Marc Bolland said in a company statement.

Swannell said it was a privilege to be asked to chair "one of the world's greatest brands." He wasn't immediately available to comment further on his new role.

Swannell's background in banking will be a "useful skill" for the company, said Seymour Pierce analyst Kate Calvert. Still, she said the well-trailed appointment doesn't necessarily herald a change in strategic direction. She also noted Swannell's lower salary compared with his predecessor will appease larger shareholders, even though Swannell's non-executive role isn't directly comparable to Rose's dual non-executive and executive responsibilities.

On becoming chairman, Swannell will receive an annual salary of GBP450,000 and won't be entitled to a bonus or share options. Rose received GBP875,000 from the end of July this year on becoming non-executive chairman, a 25% reduction from the GBP1.16 million he received as executive chairman.

Swannell's appointment comes amid a raft of recent management changes at the retailer.

Rose, who angered shareholders by combining the roles of chairman and chief executive of the retail giant in 2008, was due to leave by the end of March 2011. He was succeeded as chief executive in May this year by Marc Bolland, former head of William Morrison Supermarkets PLC (MRW.LN), the U.K.'s fourth-largest grocer by market share.

Alan Stewart, 50, who was hired in August as chief financial officer from aircraft leasing company AWAS, will start at M&S in October. Stewart replaces Ian Dyson, 47, who is joining U.K. pub group Punch Taverns PLC (PUB.LN) as CEO.

In July, M&S said it made a good start to 2010 when it reported a 3.6% rise in first-quarter sales, but its outlook remained cautious.

Often viewed as a bellwether for U.K. consumer sentiment, the group said sales from stores open at least a year rose 3.6% in the 13 weeks to July 3 from a year earlier. This compares with a 5.1% rise in the fourth quarter last year and a 0.8% rise in the third quarter.

At the end of May, M&S posted higher annual profits and sales, including the first rise in food sales since 2007.

However, retailers are concerned that spending cuts, combined with a forthcoming rise in tax on sales of goods to 20% from 17.5% Jan. 4 next year, will hit consumer sentiment.

Economists also warn that factors including inflationary pressure and concerns about job security could weigh on consumer spending.

Bolland, who formally took over the reins as CEO from Rose in July, will deliver his strategic plan at the interim results in November. Analysts say the retailer needs to update its clothing line, step up its food operations, expand its international business and deal with its pension fund deficit.

At 1213 GMT, M&S shares were up 6 pence, or 1.8%, at 339 pence, in a higher London market.

-By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; simon.zekaria@dowjones.com

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