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Get your free copy19 March 2012, 13:39 PM
- Tesco’s head of UK & Ireland, Richard Brasher, has stepped down unexpectedly, leaving the role to be absorbed by Group CEO Philip Clarke
Following the under-performance of the ‘Big Price Drop’ initiative, spearheaded by Mr Brasher, the UK market is proving problematic for Tesco. Mr Clarke’s step closer to the UK business demonstrates his intention to turn the business around.
Having created the role of chief executive of UK & Ireland in the wake of Terry Leahy’s departure, Clarke is now seeking much closer involvement in the UK arm of the business, taking that responsibility back into his own hands.
According to Cliona Lynch, senior analyst at Verdict Tesco’s UK business is facing its most difficult period in its history. “A difficult Christmas showed that the investment in the ‘Big Price Drop’ was not reaping sufficient rewards. As the UK’s number one grocer, Tesco, with 28.3% share in 2011, has the most to lose to competitors.
“Verdict estimates Tesco’s space in the UK is to reach 37.7m sq ft in 2012, with coverage in every postcode in the UK. This strong coverage is not being supported by growing sales, with the result that sales densities have been falling since 2009, and we expect them to fall by a further 2.9% in 2012,” says Ms Lynch.
