The Wall Street Journal sums up Tesco's continuing problems in the UK this way: "Since the financial crisis, British consumers have changed the way they shop, but Tesco hasn't changed the way it sells … To some extent, Tesco is the victim of a seismic shift in shopping habits being felt on both sides of the Atlantic. Price-conscious shoppers now go to smaller, local stores and discounters for everyday essentials—or get them online—and visit upmarket stores for treats. For many families, weekly food shops in the large out-of-town superstores Tesco pioneered are a thing of the past."
The bigger problem, the story suggests, is that even though the state of the company is not of the current CEO's making, Philip Clarke may also not be the guy with the vision and leadership muscle to dig Tesco out of the hole it is in. At least, that's the argument of some shareholders, who feel that the company's board and executive bench simply is not strong enough to support Clarke when he is right, and stand up to him when he is wrong.
The bigger problem, the story suggests, is that even though the state of the company is not of the current CEO's making, Philip Clarke may also not be the guy with the vision and leadership muscle to dig Tesco out of the hole it is in. At least, that's the argument of some shareholders, who feel that the company's board and executive bench simply is not strong enough to support Clarke when he is right, and stand up to him when he is wrong.
- KC's View:
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The WSJ is right. A sea change has taken place. And the real question is whether Clarke is the guy to navigate what are unfamiliar and treacherous seas filled with enormous icebergs with names like Aldi and Lidl.
