X5 Retail Group NV, Russia’s second-largest retailer, Stephan DuCharme resigned as chief executive officer after leading a business turnaround.
DuCharme will become chairman, Moscow-based X5 said in a statement Tuesday. The retailer appointed Igor Shekhterman, a board member, to become CEO. X5 depositary receipts fell as much as 4.7 percent and traded 1.9 percent lower at $15.80 as of 9:32 a.m. in London.
“Initially, people perceive this as negative, given management turnover in X5 in the past,” said David Ferguson, analyst at Renaissance Capital in Moscow. “Still, I won’t overplay this resignation. What’s important is the management team, while the CEO role is more supervisory in X5.”
Since becoming CEO three years ago, DuCharme, who didn’t have previous retail experience, pulled together a management team that accelerated growth. The company’s main format Pyaterochka helped X5 outperform its larger rival PJSC Magnit last quarter after refurbishing stores and improving its assortment.
DuCharme replaced CEO Andrei Gusev in 2012 as X5 failed to grow as fast as competitors and its share price was falling. After four years of stock declines, the shares have gained 30 percent this year.
Shareholders will vote on Shekhterman’s appointment in November.