Tesco CEO quits

 

tescoBritain’s biggest retailer Tesco says CEO Philip Clarke will step down in October, as the troubled supermarket giant warns first half sales and profits will miss expectations.

Clarke, who has been at the helm for three years, will be replaced by Unilever executive and turnaround specialist Dave Lewis, Tesco said in a statement, as the group struggles with what it described as “challenging” trade.

“Tesco announces that Dave Lewis will join the board of Tesco on October 1 as CEO in succession to Philip Clarke,” the company said.

“Philip Clarke will continue as CEO until that date when he will step down from the board but will continue to be available to support the transition until the end of January 2015.”

Tesco faces fierce competition in Britain from German-owned discounters Aldi and Lidl, as well as from traditional supermarket rivals comprising Walmart division Asda, Sainsbury’s, Morrisons, and Waitrose.

The group had revealed in June that it suffered its worst British sales performance for 40 years in the first quarter.

And in April, the group posted the second drop in annual profits in a row, hit by difficult trade in Europe and a costly investment plan that was aimed at turning around its domestic business in Britain.

Tesco is the world’s third biggest supermarket group after French rival, Carrefour, and with US retailer, Walmart, in first place.

AFP

Comments

2 comments

  1. Avatar

    Jim posted on July 22, 2014

    Oh ... this article sounds familiar... just remove the words 'Tesco' and replace it with Coles and/or Woolworths.... Isn't real competition a GREAT thing... Got to love the German model and I hope Lidl comes to Australia as well. reply

  2. Avatar

    Andy Wilson posted on July 22, 2014

    Lidl and Aldi have never been serious competition to Tesco. They are very small stores with a limited range of basic groceries. The shopping environment is also basic. The prices at used to be extremely cheap, and much cheaper than the big supermarkets like Tesco, but the difference these days is far less significant. Asda is the only supermarket in Britain that really can be considered the equal of Tesco in terms of store numbers, presentation, and range of goods on offer in them. Morrisons is a little way behind Tesco and Asda. Sainsbury and Waitrose are more upmarket, targeting the "premium" end of the market. They are generally frequented more by those wanting something for a special occasion, and those with higher than average incomes. For these reasons, I am very surprised if Tesco isn't doing as well in the last couple of years as it has before. But then again there is only so long that any company can continue with rapid expansion and sales increases before things level off. It may well be that Tesco has reached that point where it cannot really expand or increase sales anymore. That doesn't mean it's not still making plenty of profit! reply

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