👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Tesco's new boss says will make management changes

Published 05/09/2014, 11:20
© Reuters A shopper passes a Tesco supermarket in London
TSCO
-

LONDON (Reuters) - Dave Lewis, the new chief executive of Tesco, the world's third-largest retailer, said further management changes at the troubled British grocer were inevitable.

The former Unilever executive and turnaround specialist started his new job on Monday - succeeding the ousted Philip Clarke a month earlier than planned - with a remit for a major review of the 95-year-old business which issued its second profit warning in two months last Friday.

"Will there be (management) changes? Let's be honest, there has to be. We don't want the trend of our business to carry on," said Lewis in a video posted by Tesco on YouTube.

"What the nature of those changes will be, you're just going to have to trust me for a while ... I won't be making decisions hastily but I will, if I need to, change things. I will make those calls."

Some analysts reckon UK managing director Chris Bush is particularly vulnerable given Tesco's underperformance in its key home market.

Lewis said he had "lots of ideas" and "lots of thoughts" about addressing Tesco's loss of market share in the UK but would not be jumping "to a very simple solution for that".

"I'm going to spend some time listening, I'm going to spend some time observing and learning from colleagues as to what it is they think we could be doing," he said.

"But I do think it's pretty clear: We have to get back to the core of our business ... We will go back to finding out what it is, be it price, be it service, be it availability, what it is that customers need from us so that they reward us with their loyalty."

Lewis also said he would not make any "knee jerk" decisions on pulling out of some of the 11 overseas markets Tesco operates in.

"I'm very happy with the business that we've got and we're going to run the business that we've got," he said.

"I've got some questions and I've got some things I need to learn and I need understand."

The new CEO said he recognised the strength of Tesco's brand had waned and that staff morale had suffered but called on the firm's 500,000 employees, 320,00 of which are in the UK, to focus on improving the customer experience.

© Reuters. A shopper passes a Tesco supermarket in London

"I think when we do that we'll be OK in terms of managing the commercial aspects of our business and therefore not needing to make some of the changes that some people outside of our business are advising us to," he said.

(Reporting by James Davey; Editing by Mark Potter)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.