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Thursday, 15 March 2012

Tesco Supermarket's UK Chief Executive Resigns

In January we discussed disappointing sales for Tesco supermarket in the UK over the christmas period. We also questionned whether Tesco was beginning to lose its position, as the leading supermarket in the UK. Today it has been revealed that Tesco's UK Chief Executive Richard Brasher has decided to leave Tesco. This is in response to Tesco Group Chief Exceutive Philip Clarke's decision, to take control of the supermarket's UK operations, in addition to his global role. Tesco's share price dropped in January following Tesco's announcement of poorer than exepected sales in the UK over the Christmas period. However Brasher's resignation decision does not seem to have affected the share price.An increase in share price indicates that investors believe that the event (in question) is likely to benefit an organisation, whilst a drop suggests (that they feel) it will be detrimental but lack of movement in the share price is difficult to gage. Does it mean that investors were expecting the event or are they simply unsure of its impact on the organisation. If the latter is correct it's not surprising; at this stage it is difficult to assess whether Philip Clarke will be able to balance his global duties with restoring Tesco's glory days in the UK.

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