Could Tesco Be On Its Way to a Three-Way Split?
Former Unilever executive Dave Lewis is going to have his work cut out for him when he takes over as the new Chief Executive Officer at Tesco on October 1. According to new reports, one major issue he will be facing is pressure to split the massive retail empire into smaller and more manageable parts.
UK source The Independent reports that financial analyst and former Tesco executive Bruno Monteyne is publicly calling for Lewis to consider splitting Tesco into three divisions: a high-end “Tesco Finest” chain to compete with more posh grocery chains like Waitrose, a middle-ground basic Tesco chain, and a “Tesco Discount” chain to compete with growing budget rivals like Aldi:
Tesco’s current policy is to offer the same prices nationwide, in an effort to promote fairness and stave off questions of price fixing, but Monteyne argues that this policy has hamstrung Tesco’s ability to be competitive – what is a fair price in an affluent city could be cost-prohibitive in a more rural region.
Monteyne admits that his views could be perceived as eccentric or extreme, but objectively it’s a strategy worth exploring further – after all, the largest contribution to Tesco’s board of directors pushing former CEO Phillip Clarke out of his role is Tesco’s plummeting market share within the UK. In Europe as much as anywhere else, specialty grocery chains like Waitrose and Aldi are steadily gaining ground with consumers who are looking for a shopping experience more specifically tailored toward their needs.
There’s no telling whether this will get past the suggestion stage. But Lewis will certainly have a lot to think about when he moves into his new role.
[SOURCE: The Independent]
Jim Donald appointed the CEO of Albertsons
Donald, who previously worked as the company...
The Idaho-based grocery chain, Albertsons, has appointed Jim Donald as its new Chief Executive Officer.
Donald, who previously worked as the company’s President and Chief Operating Officer, will keep his presidential role.
The new CEO will replace Bob Miller, who will continue in his position as Chairman of the Board.
“Jim Donald has built an exceptional career in retail,” remarked Bob Miller.
“His knowledge of our company and industry is unmatched, and I know his contributions will be invaluable as we enter the next chapter of Albertsons Companies.”
“We look forward to tapping his experience in leading large consumer brands as we work every day to meet our customers’ needs, both in-store and online.”
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In his career, Donald has held positions such as the CEO of Starbucks and the CEO of Pathmark Stores.
The newly-appoint CEO also worked for Albertsons for 15 years, starting 1976, becoming the Vice President of Operations in Arizona.
“Albertsons Companies is uniquely positioned to operate in both a 'four walls' traditional environment and the 'no walls' world of technology,” stated Jim Donald.
“We serve 34 million customers each week across our 2,300-plus stores and serve 5.5 million patients in our 1,700-plus pharmacies.”
“That's a significant food, health and wellness footprint. We're well positioned to serve the evolving needs of today's customer, wherever and whenever they choose to shop with us.”
“I am looking forward to leading this dynamic company as we focus on innovation and customer-centric retailing in all its forms.”