Tesco has shaken up its UK management in a move that will see new chief executive Dave Lewis take control of the supermarkets’s troubled domestic business.
As part of the changes, Tesco has parted company with Chris Bush, managing director of the UK business, as well as one of the eight senior managers asked to step aside in the wake of the £260m overstatement, according to people familiar with the situation.
However, Tesco said that Matt Simister, one of the so-called Cheshunt eight – named after Tesco’s head office north of London – and responsible for group sourcing, was returning from suspension.
Mr Lewis said in an internal announcement to staff that Mr Simister had “worked tirelessly to resolve the issues we faced”. He added that Mr Simister’s “conduct and contribution during our investigation was exemplary, and I would like to personally thank him for that”.
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The FT revealed last week that Tesco had parted company with at least three of the senior executives asked to step aside in September when it discovered that first-half profits had been overstated by £250m. It subsequently said the mis-statement was £260m. These were Kevin Grace, group commercial director and Mr Simister’s boss, Carl Rogberg, UK finance director, and John Scouler, UK food commercial director.
The retailer said Jason Tarry, the head of its clothing business who had been acting commercial director, will remain in the role. Robin Terrell, the head of online, who had been put in charge of the UK business, will take up the position of marketing director.
Tesco said the new structure meant there was no longer a role for Matt Atkinson, the chief creative officer, and David Hobbs, group business planning and strategy director, who will both leave the retailer.
November 2014: Lex’s Robert Armstrong and Oliver Ralph discuss the many remaining unknowns and the few knowns about Tesco’s turmoil
The shake-up comes ahead of the crucial Christmas trading period, when Tesco will be battling its big four rivals – Asda, J Sainsbury and Wm Morrison – for sales, and also the fast-growing German discounters, Aldi and Lidl.
Tesco had shown some progress in attempts tor turn round the UK business, with Kantar Worldpanel reporting an improvement in its trade in October. However, in the four weeks to November 9, Tesco was once again the worst performing of the so-called big four supermarkets, with sales falling by 4.2 per cent.
In other moves, Tesco said Jill Easterbrook would be responsible for “business transformation, while Benny Higgins, head of Tesco Bank, would also become responsible for group strategy.
One absence from the reshuffle was Andrew Yaxley, who runs stores in London, but held a commercial role in the past, who had been tipped by some analysts as a contender to return to a commercial role within the UK business.
Date: December 1, 2014