‘Time running out’ for Tesco chief

Tesco boss Philip Clarke is being urged to slash prices to inject more life into its £1bn turnaround plan as the retailer reveals a major overhaul of its Finest range, adding 400 lines to its 1,500 product portfolio.
According to reports, one leading Tesco shareholder has urged Tesco to be more “aggressive” with its UK turnaround plan adding that Clarke – who succeeded Sir Terry Leahy as Tesco chief executive in March 2011 – is running out of time to prove to shareholders he is the right man for the job.
Some commentators have claimed that the retailer is suffering from the “Manchester United effect”, referring to the current ills of the new manager David Moyes after succeeding Sir Alex Ferguson.
The shareholder said: “People don’t believe the margin is sustainable with existing market share trends. We are not calling for change today, but it is becoming far more pressing for him to demonstrate evidence of a turnaround.”
The calls come as the Finest range – launched in 1998 in just a few stores – gets a major facelift.
The relaunch is being supported by sponsorship of Downton Abbey, by a multi-media advertising campaign which starts in mid October. Over 400 new products are being launched and in all, three-quarters of the 1,500 products in the range will be either new or improved.
The Finest brand is worth £1.4bn in sales a year and according to Kantar Worldpanel data, is the fastest growing premium brand in the market. Over 12 million Finest products are eaten in the UK every week.
Tesco UK managing director Chris Bush says: “Finest is Tesco’s flagship food brand and our aim with today’s relaunch is simple – to be the best product on the market. It is already the fastest growing premium brand in the market, and we’ve reviewed every product in the range to be sure it’s fit to carry the Finest brand.
“We’re confident Finest offers our customers the very best food in the market, at the accessible prices they expect from Tesco”.

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