Tesco takes stock as market share falls
TESCO has taken further dramatic steps to stop the rot in its home market by replacing its UK marketing boss.
Britain’s biggest retailer said Carolyn Bradley, who was responsible for promoting the retailer’s troubled British arm, was being moved to a new group role in charge of brands, as fresh data showed the UK business continued to lose its grip on shoppers.
The supermarket giant has seen its dominance in Britain fall to its lowest level in almost seven years, according to figures compiled by research firm Kantar.
Tesco’s market share slipped once again, to 29.7pc over the 12 weeks to February 19, having dropped through the psychologically significant 30pc mark last month to 29.9pc.
It follows a dire 12 months for Phil Clarke, who will celebrate his first year as chief executive next week, in which he has presided over Tesco’s first profit warning for 20 years. He also oversaw the failure of a £500m price-cutting campaign to kickstart growth, as rivals stole the show during the festive period.
The retailer has drafted in David Wood, currently commercial director in Hungary, to replace Bradley, who will take over her seat on the UK board.
Wood is seen as a big hitter who in past lives has managed and marketed brands for American processed cheese firm Kraft and consumer goods giant Unilever. In an internal memo seen by the Daily Mail, under-pressure UK chief Richard Brasher, said: ‘I am pleased to announce two important moves which will increase the strength of both the group and our UK leadership team.’
Sources inside Tesco (up 0.4p to 318.40p) claim Bradley’s move had been in the pipeline for many months and was not a reaction to recent trading.
Bradley said: ‘I am excited by this opportunity to use my experience to help build our brand.’
On Wood, advertising boss Robert Harwood- Matthews, president of TBWA said: ‘As UK marketing director he can bring to bear both his marketing and commercial expertise, which is a powerful combination for Tesco.’
AT the rival Co- operative Group there were reports that the integration of Somerfield continues to be plagued with problems three years after the £1.6bn acquisition.
Unofficial data shows that underlying food sales collapsed 3.38pc over the eight weeks to February 25 at the former Somerfield stores, exposing a divide with the original Co- op supermarkets, which increased 0.13pc.
A report on customer complaints, which also rose, made for alarming reading, citing staff swearing at and overcharging customers.