Tesco chief steps down after profit warning
21 Jul 2014
Philip Clarke has left his position as chief executive of Tesco, Britain’s biggest retailer, after warnings of a fall in profits in the first half of this year.
Sales for the supermarket have been declining since 2011, which is also the year that Mr Clarke took over as chief executive, and a major profit warning was released this week despite a small share price increase of almost 2%.
Discount retailers such as Aldi and Lidl have been blamed in the past for Tesco’s decline, while the supermarket giant has focused on ‘investments we are making to improve the customer offer and to build long term loyalty’.
Tesco chairman, Sir Richard Broadbent, said: ‘Philip has done a huge amount to set a clear direction and reposition Tesco to meet the rapid changes taking place in the retail market. He has achieved a great deal across all areas of the business in the face of considerable pressures’.
Unilever director Dave Lewis will become chief executive of Tesco on 1 October, with Mr Clarke available until the end of January to ensure a smooth handover.