Friday, March 16, 2012

UK Tesco Boss Walks

Failed strategies have ensured that UK Tesco’s sales will continue to disappoint and this means that the boss of its British operation, Richard Brasher is being forced to step down after only a year on the job.

The supermarket chain's group chief executive, Philip Clarke had mentioned that £500 million worth of price cuts hadn’t been yielding the desired results and so he is challenged to take on responsibility for the UK business.

This latest act of desperation demonstrates how important the UK market is to Tesco. Granted that Tesco has been aggressively expanding overseas but the UK remains Tesco’s most important market, generating two-thirds of sales.

Asia is the second biggest market at 17%, closely followed by continental Europe at 16%. The United States, where Tesco launched the Fresh and Easy chain in 2007, accounts for less than 1% of sales.

Because of the importance of the UK market, Tesco created the post of UK chief executive in 2010 for Brasher

Even as Clarke takes over, Tesco’s fortunes are not likely to get any better. I am not optimistic. If readers wish to know more about UK Tesco, I had featured the story of Tesco in three previous postings as follows: September 28, 2011; October 25, 2011; and February 29, 2012.

I went to No. 57 at The Boulevard in MidValley to attend the MAICSA Toastmasters meeting yesterday. It was a good meeting because there were four wonderful speeches to listen to although I could not say the same for the evaluations. And horror of horrors, the meeting started almost twenty minutes late! I would score this meeting a 4 out of a 10.

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