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Tesco CEO defies pressure to quit

Wednesday, Apr 16, 2014 - 02:43

Apr 16 - Tesco's CEO Philip Clarke says he has no intention of standing down but will see through his ''bold'' plan to rebuild the world's third-largest retailer. (Rough cut - no reporter narration)

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(ROUGH CUT - NO REPORTER NARRATION) Tesco boss Philip Clarke vows to win back shoppers with millions of pounds of price cuts after a second year of falling profits cast doubt on his efforts to turn around the fortunes of Britain's biggest retailer. Despite calls from investors to quit or change tack, with several worried about a price war, Clarke insisted he would see through his "bold" plan to rebuild the company, which had been the darling of the sector during two decades of uninterrupted earnings growth before a shock profit warning in 2012. Tesco shares, at 10-year lows, jumped 5 percent in early trade as Clarke said he would respond to the discount groups and upmarket grocers that have hit Tesco from both sides and sent its British market share to a near 10-year low of 28.6 percent. One of Tesco's largest 20 investors was reported on Tuesday as having called Clarke the "wrong person for the job" with the "wrong strategy". Another shareholder told Reuters the strategy of cutting prices now to compete with increasingly popular discounters Aldi and Lidl was a "shambles", arguing that with wages improving it should instead focus on improving service. Tesco is the world's third-largest retailer, with a market valuation of 23 billion pounds and 530,000 staff.

Tesco CEO defies pressure to quit

Wednesday, Apr 16, 2014 - 02:43

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