S.Africa's Woolworths taps M&S veteran to head David Jones

JOHANNESBURG, Sept 30 (Reuters) - South Africa's Woolworths Holdings said on Wednesday it has tapped a Marks & Spencer veteran to head David Jones, its Australian department store chain, where it aims to boost food sales.

John Dixon will take the reins at David Jones in January, replacing Iain Nairn who resigned for personal reasons after heading the chain for 14 months.

Woolworths wants to improve its food business in Australia, and in a statement on Wednesday credited Dixon, who joined Marks & Spencer in 1986, with the turnaround of the British retailer's 5.2 billion pounds ($7.9 bln) food business in recent years.

Woolworths bought David Jones last year in a $2 billion deal that gave the Australian retailer the financial firepower to ramp up its online offerings and in-store label, while helping Woolworths in its aim to become a major global player.

Woolworths' Chief Executive Ian Moir said last month that the format of David Jones's food business was "a little tired".

"John's appointment reflects our long-term strategy to take the David Jones business to the next level," Moir said in a statement on Wednesday.

That would include closing some David Jones stores in downtown Sydney and Melbourne, consolidating them into larger stores, and even considering standalone food stores, Moir said last month.

Dixon ran Marks & Spencer (Other OTC: MAKSF - news) 's food business for four years before taking over as head of its non-food division in 2012, which he ran until he left the company in July this year. He was once seen as a future CEO of the British retailer but his star waned as M&S struggled to deliver a sustained increase in clothing sales.

In South Africa, Woolworths has grown both market share and profits by focusing on high-end groceries and wealthier shoppers amid sluggish overall consumer demand as the country's economic growth is declining. That has helped drive its shares up 26 percent this year, outperforming a 2 percent gain in South Africa's benchmark index. ($1 = 0.6591 pounds) (Reporting by TJ Strydom; Editing by Susan Fenton)