Tesco investor demands CEO Philip Clarke’s resignation: FT

Tesco CEO Philip Clarke is reportedly facing calls to quit from a top shareholder, who is not happy with Clarke's efforts to turn around the biggest UK retailer.

Citing anonymous source, the Financial Times reported that one of the top 20 investors is demanding Clarke's resignation because the investors believes that Clarke is no the right person for the job.

Quoting the investor, the newspaper said, "Clarke has shown he is the wrong person for the job. He has got the strategy wrong."

The report added that some other top shareholders had also predicted that change at the helm of leading UK retailer was inevitable.

When contacted, a spokesperson for Tesco declined to comment on the report.

Ninety-five-year-old Tesco, which dominated the British high street for many decades, issued its first profit warning in two decades in 2012 and has been struggling since then. A round a week ago, Tesco's Chief Financial Officer Laurie McIlwee stunned the industry by announcing his resignation.

The retailer has been under Clarke's turnaround program for the last couple of years, but even increased spending on refits, more staff and new product ranges failed to boost sales at its 3,150 stores in the UK.

Tesco is the UK's No. 1 and the world's third-largest retailer, after Wal-Mart Stores Inc and Carrefour. It is expected to report another fall in profit when it publishes its annual results for FY2013-14 on April 16.

Companies: 
General: 
People: 

Advertisements