its chief executive, Philip Clarke (pictured), will leave the role in October and will be replaced by Unilever's Dave Lewis.In a statement Tesco said that, "current trading conditions are more challenging than we anticipated at the time of our first quarter interim management statement on 4th June" and that "this means that sales and trading profit in the first half of the year are somewhat below expectations". They added that "outlook for the full year will be influenced by the extent to which benefits from the investments we are making begin to be seen; by conditions in the overall market; and by any steps that may be taken during the remainder of the year to improve our customer offer further."
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. We are pleased to announce today the appointment of Dave Lewis, President, Personal Care at Unilever, as our Chief Executive from 1 October, 2014.
"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."
There are many talented executives at Tesco headquarters so it may have come as a bit of a disappointment that Tesco did not appoint someone from within their own ranks.
Lewis will join the Tesco board on 1 October as chief executive, with Clarke being kept on in a supporting role until January 2015. Clarke will also remain Chairman of Tesco's joint venture with CRE in China until that date.
During his time at Unilever, Lewis significantly strengthened the Dove brand. The success of Dove outshone similar offerings by P&G, not only in terms of the brand itself, but also with regard to its innovative packaging and sustainability. Lewis has also been responsible for a number of business turnarounds (e.g. Home and Personal Care Central and Eastern Europe, Unilever UK/Ireland), as well as leadership in areas of significant strategic priority (e.g. Laundry Latin America, Personal Care Indonesia/ S.E. Asia and Global Personal Care).
Broadbent added, "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."
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.
"I will do everything in my power to support him in taking the company forward through the next stage of its journey."
