Tesco hit by customer data scandal

Just 24 hours after Tesco exposed its profits accounting scandal – triggering the suspension of four executives and a £2bn share write-off – it has been revealed its largest subsidiary outside the UK is facing an investigation over the illegal sales of customer data.
According to a report from the BBC, regulators in Seoul have opened an investigation into dodgy dealings at the retailer’s Homeplus business in South Korea – the jewel in the crown of its overseas operation, with 400 stores.
Allegations include the selling of customer data to an insurance company without permission, and the suggestion that a BMW car, meant as a customer lottery prize, ended up being won by a staff member’s friend.
Although obviously not related to the UK scandal, nevertheless it is likely to fan the flames of the crisis engulfing one of the world’s most successful retailers.
The revelations come as Tesco has announced its new chief financial officer Alan Stewart, is joining the company immediately, more than two months earlier than planned. Stewart, who has been released early from his contract at Marks & Spencer, succeeds Laurie McIlwee, who left just over a week ago, following his resignation in April.
Yesterday, Tesco stunned the City by saying it had overstated its half-year profit guidance by £250m; it has launched an investigation headed by Deloitte.
Four executives – UK managing director Chris Bush, UK finance director Carl Rogberg, food commercial director John Scouler and head of food sourcing Matt Simister – have been suspended during the probe.
There has been even more bad news for the retailer today, after Kantar Worldpanel data showed Tesco’s sales were down 4.5% year on year in the 12 weeks to 14 September. On top of the 3.8% decline reported in the previous quarter, it means Tesco’s market share has now fallen to 28.8%.

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