Dough McMillon and Dave Lewis haven taken over as chief executives for Walmart and Tesco respectively. What will they bring to their new roles?

Interesting times in retail, as if there is ever a dull moment anyway. Two of the global giants, Walmart and Tesco: both with challenges in their home market; both with issues overseas; both with a strategic leaning towards multichannel; both with an increasing propensity towards smaller boxes; and both with new bosses.  

Every industry says it is a ‘people business’, but retail is the sector that has the greatest claim to this mantle. People really do count, all the way from the chief executive to the warehouse worker, from finance and supply chain bods to the checkout operator and, indeed, the shopper. Despite all of the great strides in online, automation and technological innovation, human beings (and their interaction) are still the lifeblood of retailing, which is why getting the right chief executive is vital.

I’ve been fortunate enough to see Doug McMillon and Dave Lewis speak. They have a lot in common: humility derived from their experience in the trenches, albeit on opposing sides; a passion for the customer; an ability to lead from the front, bringing their people with them; and a willingness to listen to and learn from all of their colleagues, regardless of status or seniority.

I get the impression that both have fists of iron when required, but also enough velvet glove to make some tricky decisions palatable for their companies. It was heartening to see Lewis hit the ground running with regards to communication with the Tesco team, be it in person or through video, and one suspects that his mileage allowance and frequent-flier cards will get a hammering over the next few months as he immerses himself in the global Tesco business.

Reassuringly, he hasn’t soft-soaped around the fact that morale, or the lack of it, is a big problem in the UK. Managers I’ve spoken to have bemoaned the fairly savage cuts in payroll they have had to endure, but it sounds like stores have been cleared to increase manpower. Insert your own ‘large oceangoing vessel’ metaphor here, but the recovery will take time. It will be led by Tesco’s people, shopping trip by shopping trip. And it will be led from the front.

  • Bryan Roberts, director of retail insights, Kantar Retail