Tesco boss Philip Clarke to leave

Written By Unknown on Senin, 21 Juli 2014 | 19.21

21 July 2014 Last updated at 10:19

Tesco's chief executive Philip Clarke is to leave the retailer in October after the UK supermarket giant said it would miss profit forecasts.

Mr Clarke, who has led the firm since 2011 and had previously insisted that he was "not going anywhere", will be replaced by Dave Lewis of Unilever.

Tesco said current trading had been "more challenging" than anticipated.

It added that sales and trading profit for the first half of the year were "somewhat below expectations".

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Mr Clarke had been trying to revive Tesco's fortunes through a £1bn turnaround plan, but a trading update last month showed a 3.7% fall in like-for-like sales, which Mr Clarke admitted were the worst figures for decades.

At the time, Mr Clarke spoke of his intention to stay with the store and outlined that he was "going to see through a fundamental reshaping of Tesco".

But in the statement announcing his departure, Mr Clarke said: "Having taken the business through the huge challenges of the last few years, I think this is the right moment to hand over responsibility."

Investors welcomed the change of leadership, sending shares in Tesco up nearly 3% in morning trade to 293.20p.

Bryan Roberts, retail analyst at Kantar Retail told the BBC: "Philip Clarke inherited a troubled business that had not seen enough investment in the UK and also featured misguided overseas expansion.

"Although a lot of progress has been made under Clarke, he has failed to reignite performance in a British grocery market that has undergone structural change and a huge shift in shopper behaviour."

Analysis: Kamal Ahmed, BBC Business Editor

In the polite language of the boardroom, Philip Clarke did not leave at a time of his choosing. It was only two months ago that the Tesco chief executive was talking about being at the retailer until 60. Well, now he's gone and he's still only 54.

After months of low-level grumbling from investors, yet another profits warning proved to be the final curtain for the Tesco lifer. The share price this morning is up 2%.

Tesco's major strategic problem was no one was quite sure what it was for - it was marooned between the more upmarket offer of Sainsbury's and Waitrose and the value offer of Aldi and Lidl.

One source at Tesco told me this morning that in the battle between "users and choosers", the retailer was on the wrong side. Yes, lots (though diminishing numbers) of people used Tesco, but not enough chose to.

It will be Dave Lewis's job to change that equation.

Read more from Kamal

'Fresh perspectives'

Mr Clarke will leave Tesco's board on 1 October to be replaced by Dave Lewis, who is currently president of personal care at consumer goods firm Unilever.

It is the first time Tesco has appointed someone from outside the firm to the position of chief executive.

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  • 1919 - Jack Cohen starts business from a barrow
  • 1929 - Opens first shop
  • 1947 - Floated on stock market
  • 1958 - First supermarket opened in Maldon, Essex
  • 1961 - Tesco Leicester enters the Guinness Book of Records as the largest store in Europe
  • 1968 - Opens first superstore in Crawley, West Sussex
  • 1995 - Clubcard launched nationwide
  • 1996 - Expands overseas
  • 2009 - Tesco Bank launched
  • 2011 - Sir Terry Leahy steps down as chief executive
  • 2012 - Tesco unveils a £1bn UK revival plan
  • 2013 - Reports first drop in profits for 20 years
  • July 2014 - Tesco says chief executive Philip Clarke is to step down

In a statement, Tesco chairman Richard Broadbent said: "Philip Clarke agreed with the board that this is the appropriate moment to hand over to a new leader with fresh perspectives and a new profile.

"Dave Lewis brings a wealth of international consumer experience and expertise in change management, business strategy, brand management and customer development.

"He is already known to many people inside Tesco, having worked with the business over many years in his roles at Unilever."

'Sizeable task'

The latest figures from research firm Kantar Worldpanel found that Tesco's market share had fallen to 29% in the 12 weeks to 25 May, down from 30.5% a year earlier.

In the statement announcing Mr Clarke's departure, Tesco said trading conditions were "more challenging than we anticipated" at the time of its trading update in June.

"The overall market is weaker and, combined with the increasing investments we are making to improve the customer offer and to build long term loyalty, this means that sales and trading profit in the first half of the year are somewhat below expectations."

Tesco has faced intense competition from discount rivals including Aldi and Lidl as well as from more upmarket retailers such as Waitrose.

Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said: "In all, the task ahead for the new chief executive remains sizeable. The march of the discounters Aldi and Lidl continues, whilst Tesco's prior advantage in the form of its overseas operations is not what it once was.

"The question now will be whether the new chief executive will have the courage to take early aggressive action."


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