Marks & Spencer surges after Archie Norman appointed as chairman

Highly respected Norman has earnt a reputation for improving the fortunes of several major companies including Kingfisher, Asda and ITV.

Said Swannell: "I am delighted that Archie, with his deep, relevant experience is to be M&S's next Chairman."

He added: "With the appointment of Steve Rowe in 2016, I am confident that we have an excellent team, well-equipped to grow and strengthen the business. I wish them all the very best for the future."

Independent director Vindi Banga, who led the selection process, thanked Swannell for his contribution and commitment to the FTSE 100 company over the last seven years and said Norman was "one of the most respected business leaders in the UK with extensive experience as both CEO and Chair, and a proven record in retail and other areas. We are delighted he has accepted."

For his part, Norman, who had a political career as a Conservative MP for Tunbridge Wells, said he was looking forward to taking on the role "as the business under Steve Rowe's leadership faces into the considerable challenges ahead in a rapidly changing retail landscape".

Shares in M&S climbed strongly on the news, topping 375p for the first time since last June.

Norman is a "formidable appointment", said broker Shore Capital, pointing to his leading "one of the greatest turnarounds in British commercial history at Asda before it was sold to Wal-Mart".

Independent analyst Nick Bubb added: "Some people thought that Archie was too heavyweight for the role, which is non-executive, and it remains to be seen how much of 'a back-seat driver' he is to CEO Steve Rowe.

"When he took over at the struggling Asda in 1991 he famously played down expectations of the turnaround and we see he is up to his old tricks again in today’s statement," Bubb said.