UK: Tesco shares climb as CEO Clarke announces departure
Clarke will hand the reigns to David Lewis
Tesco's share price climbed this morning (21 July) on news the retail giant's CEO Philip Clarke is to step down, making way for Unilever executive Dave Lewis.
Weeks after Clarke revealed its third successive quarterly decline in sales, the chief executive said he thought it was "the right moment to hand over responsibility".
The reigns will be handed to Lewis, the global president of personal care for Unilever, on 1 October. Clarke will remain at Tesco to support the transition until the end of January 2015.
"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," said chairman Sir Richard Broadbent.
"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," he added.
In addition to the announcement on Clarke's move, Tesco issued another profit warning, noting current trading conditions are "more challenging than we anticipated at the time of our first quarter interim management statement".
"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," it said.
Tesco said the outlook for the full year will be influenced by the result of its investments, market conditions, and any steps taken during the remainder of the year to improve its customer offer.
Shore Capital analyst Clive Black welcomed the appointment of Lewis as "a first class executive".
"We await Mr. Lewis' prognosis for the business, particularly the UK, with considerable interest. We believe his appointment will be greeted with a great sense of encouragement by a store staff that has been pummelled in recent years so leading to a collapse in morale. A material change in UK trading strategy cannot be dismissed, which is likely to have considerable implications for the rest of the British sector."
Click here to read an analysis on Tesco and its strategy for the group's clothing line.
One of the biggest challenges - and opportunities - facing the apparel industry in 2015 is how best to embrace the omni-channel retail model, improve the shopping experience, and respond with new supp...
Tesco PLC (TSCO) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by GlobalData...
Apparel products sold by Tesco are expected to benefit from strengthening of the private label F&F and the expanding space dedicated to apparel in hypermarkets. The Cherokee brand is no longer present...
Some 190 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in 2013....
Over the forecast period, Marks & Spencer (Asia Pacific) Ltd will continue to monitor and review efficiency in supply chain and other operations in order to reduce cost. The company will also continue...
- George at Asda on responsible retail journey
- Outlook 2015: What's happening with sourcing?
- New American Apparel CEO sees solid platform
- Philippines garment sector upbeat over EU GSP+
- Outlook 2015: Challenges and opportunities
- Talks underway on Myanmar minimum wage
- Tommy Hilfiger digital showroom to reduce samples
- Fashion brands facing strong dollar “headwind”
- EU exploring responsible garment supply chains
- C&A to boost opportunities for women in India
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Li & Fung Limited (494) - Financial and Strategic SWOT Analysis Review
- E-Textiles: Electronic Textiles 2014-2024
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead