Philip Clarke quits as boss of troubled Tesco
The group, which is seeing its worst sales performance in four decades, announced Mr Clarke's departure as it issued a fresh warning on profits
Tesco chief executive Philip Clarke is to quit as the boss of Britain's biggest supermarket.
The group, which is seeing its worst sales performance in four decades, announced Mr Clarke's departure as it issued a fresh warning on profits.
He will step down from the board on October 1 to be replaced by Unilever executive Dave Lewis, though he will continue in a support role until the end of January.
Tesco chairman Sir Richard Broadbent said: "Having guided Tesco through a substantial re-positioning in challenging markets, 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."
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 and I am delighted that Dave Lewis has agreed to join us.
"Dave has worked with Tesco directly or indirectly over many years and is well-known within the business. I will do everything in my power to support him in taking the company forward through the next stage of its journey."
Mr Clarke, who had worked his way up from the shop floor to lead Tesco, admitted last month that the store's quarterly like-for-like sales, which posted a 3.7% drop, were the worst he had known in 40 years.
Video: Analysis of Philip Clarke's Tesco exit
But today's statement said conditions had become even worse than had been thought at that time.
"The overall market is weaker and, combined with 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 been battling with intense competition from discount rivals amid a continuing upheaval in customers' shopping habits and a squeeze on household budgets.
It said a better picture for the full year would be reliant on seeing improvements as a result of its investments and in an upturn in the market, as well as "any steps that may be taken during the remainder of the year to improve our customer offer further".
The group said: "Philip has done a huge amount to set a clear direction and re-position 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.
"The board are deeply grateful to Philip for his contribution to Tesco, over the last four decades, as well as more recently as chief executive. His has been an outstanding achievement.
"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.
"The board believes that, with Dave's leadership, Tesco will sustain and improve its leading position in the retail market."
- 1 Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
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?
Senior British politicians tell David Cameron: When dead children are being washed up on beaches, it's time to act
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
£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...
£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...
Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...