Tesco PLC (ADR) (OTCMKTS:TSCDY) has drawn the line and has resorted to replacing its Chief Executive Officer, Philip Clarke, after reporting first-half sales that fell short of estimates, marking the epitome of a series of setbacks since he took the helm three years ago. People have been speculating that it was time for the company to bring a new person to the helm as a way of averting any further decline. A new perspective was essentially needed in the company to kick start a new beginning according Kantar Retail’s, Bryan Robert’s, in an interview on CNBC news.
Tesco PLC (ADR) (OTCMKTS:TSCDY) has consequently appointed the head of the Personal-care unit at Unilever, Dave Lewis, who has been accredited for spearheading expansion in the British-Dutch Company as its CEO. “I think the sentiments seems to be within Tesco a fresh perspective was the phrase we heard this morning. Douglas will bring that from Unilever as you mentioned he’s got great experience across different product categories, he got some international experience as well, and he should arguably bring somehow enhanced shopping, inside the business as well,” said Mr. Bryan Roberts.
Mr. Roberts believes that the new CEO will slightly follow in the footsteps of his predecessor but will also focus on store refreshment, which is long overdue for the grocery giant. Mr. Lewis is also set to focus on transforming Tesco to a more convenient store while also focusing on online business.
Tesco PLC (ADR) (OTCMKTS:TSCDY) will need to reinvent itself according to Roberts in terms of prices and convenience instead of only focusing on providing discounts. Communication seems to be the biggest problem at Tesco in terms of goods and services offered of which Tesco needs to provide some of clarification, according to Mr. Roberts.
“The right way to turn Tesco around is to be everything that a discount business can be which is; service led, quality led, fresh fruit produce led business. It does need some sharpening on prices the discount are not winning just because they are cheap they are also winning because they are convenient,” said Mr. Roberts.
Since Clarke joined Tesco PLC (ADR) (OTCMKTS:TSCDY), the grocery store has seen its market share plummet from 30.2% to 28.9% with sales also plummeting in most of its international businesses.