UK Retail King Tesco Says CEO Dave Lewis to Step Down in 2020
Dave Lewis, who has overseen a radical overhaul of Tesco since his appointment in 2014, will be replaced by Walgreens Boots Alliance executive Ken Murphy.
Dave Lewis, Tesco CEO, speaks at the the British Chamber of Commerce annual conference in London. (Image : Reuters)
London: Britain's biggest retailer Tesco said Wednesday that CEO Dave Lewis will step down next year, and will be replaced by Walgreens Boots Alliance executive Ken Murphy.
Lewis, who has overseen a radical overhaul of Tesco since his appointment in 2014, added that the group's turnaround was "complete" and he desired to move onto new challenges. "My decision to step down as group CEO is a personal one," he said in a group statement issued alongside first-half earnings.
"I believe that the tenure of the CEO should be a finite one and that now is the right time to pass the baton. "Our turnaround is complete, we have delivered all the metrics we set for ourselves. The leadership team is very strong, our strategy is clear and it is delivering."
Former Unilever director Lewis was parachuted into Tesco in July 2014 to help turn around the group. More than 10,000 jobs have been cut in a far-ranging cost-cutting drive at Tesco, since Lewis took charge with the brief to save 1.5 billion pounds.
He took the reins just as the group was rocked by crisis in October 2014 after overstating profits in an accounting error. During his tenure, the group has sought to slash costs and fight back against booming German discounters Aldi and Lidl in home market Britain.
"Dave has done an outstanding job in rebuilding Tesco since 2014 and he continues to have unwavering support from the board," said Chairman John Allan. "Some time ago, however, he indicated to me that he was considering the best time to hand over to a successor."
Turning to the new CEO, he added: "Ken has values which align with our own, strong strategic and operating acumen, and is proven at the very top of a large and respected multinational retail group.
"I firmly believe we have the right person for the job." Tesco added on Wednesday that its first-half net profits slid four percent to 324 million pounds (USD 398 million, 364 million euros) from a year earlier.
However, it had rebounded into annual net profit last year on strong sales and restructuring following a net loss of 40 million pounds in 2016/2017 -- when it was hurt by costs arising from the accounting scandal.
Tesco said Lewis will depart in the summer, while Murphy's start date will be given at a later date due to contractual commitments. Murphy is currently executive vice president, chief commercial officer and president of global brands at Walgreens Boots Alliance.
Tesco is the world's third-biggest supermarket chain after France's Carrefour and global leader Wal-Mart of the United States, and also has global operations dotted elsewhere including China, India, Ireland, Malaysia, Slovakia and Thailand.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Recommended For You
- Bigg Boss 13: Mouni Roy Shares Romantic Moment with Salman Khan, Dances to Odhni Song
- ISL 2019-20: Controversy Heats Up Over Kerala Blasters vs ATK After Kerala Coach, Soosairaj Get Involved
- Reliance Jio All-In-One Plans Start at Rs 222 Which Includes Bundled Non-Jio Calls
- Indian Government Procures Hyundai Kona Electric SUV for Senior Officials
- OnePlus TV 55Q1 Pro Review: Mildly Eccentric But You’ll Love a Great QLED Display