Tesco, the world's third-biggest retailer, said the head of its UK business was to quit the firm, raising questions over its strategy in its biggest market two months after a profit warning sent shock waves through the grocery sector.
The firm said today UK chief executive Richard Brasher, a Tesco veteran of 26 years, would step down from the board with immediate effect and leave the company in July.
He was promoted by group CEO Philip Clarke to head the UK in March 2011.
His departure follows Mr Clarke's decision to take a much closer involvement in the UK business, whose market share last month fell to levels not seen since 2005, according to industry data.
Mr Clarke, who will assume responsibility as CEO of the UK business in addition to his existing duties, said Mr Brasher's exit "categorically does not signal another warning."
"There is no warning, if we felt that was necessary we'd be saying so and we don't think it's necessary," he told Reuters.
Mr Clarke also insisted he had not had a row with Mr Brasher, who was responsible for Tesco's "Big Price Drop" campaign launched last autumn.
"I respect the decision that he's reached and I've nothing but the highest admiration for him," he said.
"The UK's been facing challenges that are long standing. This is a consequence of my wish to take a more active role in the day to day management and nothing else, and Richard recognising you can't have two captains in a team."
Mr Brasher pulled out of an engagement to speak at the annual Retail Week conference this morning.
Mr Clarke said in the long term it was in the best interests of the group to have a dedicated UK team with its own boss. "But right now I want a closer involvement and therefore I'm taking this decision."
News of Mr Brasher's departure came just 10 days after he and Mr Clarke fronted Tesco's announcement of plans to invest in stores and take on 20,000 new staff in Britain as part of a battle plan to regain ground lost to rivals after January's profit alert.
Tesco said its plans to improve the UK business were beginning to show progress, in line with its expectations.
Reuters
