Chief executive of Tesco Supermarkets, Dave Lewis, is stepping down from his position next year , with Ken Murphy to take his place as head of the supermarket giant.
Lewis announced his resignation at the company’s interim results for 2019/2020 in which he revealed the company has completed its turnaround.
“Despite challenging external conditions we have delivered a very good start to the year. I’m very pleased to say that we have now delivered every element of the turnaround plan and from this position of strength, the transformation of our business continues at pace,” Lewis said.
“My decision to step down as Group CEO is a personal one. 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. The Tesco brand is stronger and customer satisfaction is the highest it has been for many years. Colleagues are doing an extraordinary job and their expertise shows in every store and channel every day.”
Lewis has rebuilt Tesco since 2014 and selected Murphy as his successor. Murphy has experience in retail and wholesale businesses, working with Walgreens Boots Alliance and Boots.
“It is with regret that I have accepted the resignation of Dave Lewis as Group CEO of Tesco, who has decided that he wants to leave the business in the summer of 2020,” said John Allan, Chairman at Tesco.
“With these firm foundations and a competitive, sustainable growth strategy in place, I have no doubt that Tesco will kick on again under new leadership next year. When that time comes, I will watch progress from outside with interest, deep affection and pride. In the meantime, you can be sure that I will give the job everything I have until my very last day.”
Murphy will receive £1,350,000 per annum salary once he becomes CEO.
Tesco announced plans to buy Best Food Logistics and is adding a further £1.1bn additional foodservice sales to the supermarket giant. The grocery also plans to introduce the new Clubcard Plus in the UK by the end of the year.
