Tesco shares jump on Clarke departure
Monday 21 July 2014
Shares in Tesco climbed more than 2 per cent in early London trading on the news that chief executive Philip Clarke will be replaced by Unilever’s Dave Lewis in October.
Mr Clarke announced his departure from board on Monday and will officially leave his role on 1 October. He will be replaced by Unilever executive Dave Lewis, although he will continue in a support role until the end of January.
Mr Lewis - president of the personal care division producing brands such as Lynx, Dove, Sure and Pond's - is the man tasked with turning around the company's fortunes, and the rise in share prices would appear to confirm there is confidence in his ability to do just that.
“Like David Moyes, Phil Clarke found following a highly respected, long-serving chief executive a bit of a challenge,” Chris White, head of UK equities at City investor Premier Asset Management, told The Independent. “While Dave Lewis seems to be well thought of, quite what he will be able to do about the march of discounters such as Aldi and Lidl is a moot point.”
Chris Murphy at Aviva Investors said: “We had expected this news, although maybe it is a bit sooner than we thought.”
Bernstein analyst Bruno Monteyne — a former Tesco employee and critic of Clarke — said the news confirmed Tesco’s strategy was “not working”.
Meanwhile, trading was subdued amid increasing global tensions over the crash of the Malaysian passenger jet in Ukraine, with the FTSE 100 Index 25.8 points lower to 6723.7.
Rival Morrisons was one of the leading fallers in London's top flight, shedding 2 per cent, or 4.3p, to 173.7p, while Sainsbury's was off 4.8p at 320p. Unilever shares were 9p lower at 2623p.
Elsewhere, shares in BSkyB were 16.25p lower at 901.25p after it acquired a 70 per cent share in Love Productions, one of the UK's leading independent production companies.
- 3 Make your voice heard: Sign The Independent's petition to welcome refugees
- 4 Refugee crisis: Aylan's life was full of fear - in death, he is part of 'humanity washed ashore'
- 5 German police forced to ask public to stop bringing donations for refugees arriving by train
Senior British politicians tell David Cameron: When dead children are being washed up on beaches – it's time to act
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don't change Europe's attitude to refugees, what will?
Britain to take more refugees as Cameron bows to pressure after more than 100,000 back our campaign
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...
£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...
£14000 - £16000 per annum: Recruitment Genius: This company was established in...
£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...