Sir Terry Leahy, the Chief Executive of Tesco, has announced he will step down in March next year after 14 years turning the company into UK’s biggest supermarket. Philip Clarke, who runs Tesco's Asian and European business, will take over.
Sir Terry said in a statement issued today ( 8th June), “When I became CEO I had a plan to build Tesco around its customers, to make it number one in the UK and to find new long term growth in non-food, in services and in international expansion. I wanted to develop a purpose and values that could sustain Tesco through its challenges and encourage and grow future leaders. It has taken 14 years but that strategy has become a firm reality now and so I feel my work is almost complete.I am delighted Phil Clarke has accepted the role of CEO from March 2011. I have worked with Phil at Tesco for many years and I am confident he has all the necessary talent, energy and experience to take the group forward. He will be supported by an outstanding team of senior executives who together represent one of the strongest leadership teams in the world of retailing".
“There is no better job than leading Tesco and after retirement I will concentrate mainly on private investment. I will, of course, keep a large shareholding in Tesco and remain its biggest supporter.”
Clarke has worked at Tesco throughout his career spending many years in retail and commercial. He joined the Tesco Board in 1998 and currently has responsibility for the group’s growing international operations in Asia and Europe as well as group IT. Clarke commented, “I am honoured and delighted to succeed Terry who has taught me so much. I am very excited by the opportunity to lead such a fantastic team of executives, many of whom I've worked with for years. Together we will build a global business which focuses on the customer and fully respects our people, our communities, our supply chain and our shareholders.”
Tesco’s shares fell 1.7% to 400 pence in early trading this morning following the announcement. Collins Stewart analyst Greg Lawless said the timing was a surprise but that Clarke was a good choice as successor. "Phil is Tesco through and through. He's been running the international business well and was seen as one of the leading internal candidates," he said.
Tesco also announced a series of other changes at Board Level from March 2011:
Tim Mason, President and CEO of our Fresh & Easy business in the USA, will be given the additional group responsibility for branding, our values and climate change and will become Deputy CEO of Tesco. He will continue to be based in the US.
David Potts will become the first CEO of our growing Asia business. He is currently Retail and Logistics Director in the UK, as well as having responsibility for the Republic of Ireland.
Richard Brasher, currently Commercial Director, will assume the newly-created role of CEO of the UK business and take responsibility for the Republic of Ireland.
Andrew Higginson will continue as CEO Retail Services (comprising Tesco Bank, Tesco Telecoms, Tesco’s internet business and Dunnhumby).
The group also said:
Laurie McIlwee will continue as Finance Director.
Lucy Neville-Rolfe will continue as Corporate and Legal Affairs Director.
Trevor Masters will continue as CEO Central Europe and Turkey.
Gordon Fryett will head up Property across the group.
A new group Commercial role will also be created.
No comments have been made.