Philip Clarke is assuming control of Tesco’s flagship UK operations following Richard Brasher’s exit, but for how long? Alex Lawson looks at key team members, some of whom might eventually run the British business.

Many would relish the chance to transform Tesco’s UK proposition

After last week’s sensational news that Richard Brasher is to leave Tesco, a question mark hangs over who will drive the retailer’s UK business in the longer term. Group chief executive Philip Clarke has wrested back control of domestic operations – overturning a structure introduced only a year ago – following concerns over performance, particularly at Christmas.

At first sight the centralisation of power appears sensible. As Brasher himself acknowledged in an internal email: “If even the best of teams is to succeed, it must have only one captain. Any lack of clarity on this damages the team.”

Clarke is expected to reveal a raft of initiatives to improve UK stores along with full-year results next month. These are likely to include dedicated teams responsible for fresh food, improved ranges in apparel, health and beauty, in-store ‘pound shop’ areas and investment in merchandising.

But many observers believe it is unrealistic to expect Clarke to take on responsibility for the UK as well as his group duties. More changes are expected as a generational shift continues, and top managers will be determined to shine by making an impact.

There has been speculation that deputy chief executive and US boss Tim Mason might return to the UK. Meanwhile, there are a number of Tesco stars rising. With the increased focus on fresh food, group food sourcing director Matt Simister is likely to play a key role in refreshing Tesco’s offer after successfully setting up the sourcing division to leverage global scale and create efficient supply chains. Fresh food buyer Kris Comerford is also understood to be highly thought of and could rise through the ranks.

Transforming Tesco’s proposition in the UK is a challenge many would relish and will bring the chance for some to shine in anticipation that a big domestic role will be created sooner or later following Brasher’s departure.

Kantar Retail retail insights director Bryan Roberts says: “You have an overarching structure which fits the group well. I would be amazed if Clarke continues to do both roles. It’s still a prestigious and exciting role to run the UK business.”

Shore Capital analyst Clive Black agrees it makes sense to have UK and group bosses, and that Tesco did not adapt its management structure fast enough as it evolved and grew. He is still a supporter of Clarke however. “There’s been a bit more people turnover than he would have wanted but there’s a generational change taking place,” argues Black.

But Clarke’s new approach could prove risky, exposing him directly to criticism if the UK business underperforms. Analogies with the high number of hirings and firings following poor performance in British football management have been widespread. One former buyer says: “I cannot see his tenure lasting years and years like Leahy. It feels like someone trying to take over from Alex Ferguson at Manchester United – how do you follow that?”

If Clarke does decide to hire a successor to Brasher it must be acknowledged that the role is not a poisoned chalice. The next incumbent, if there is to be one, will still take over a business with an annual turnover of £45bn.

Black says: “The Tesco business is not broken. It is like a car that needs a service. It needs some attention, some polishing and some new parts but you would expect Tesco to be doing some basic work.”

The Tesco leaders likely to play a key role in returning the grocer to its former glory

Bob Robbins, former chief operating officer

Robbins was moved from his position as UK chief operating officer early last month shortly after it emerged he had sold £200,000 shares just a week before the Christmas profit warning.

The Newcastle United fanatic now has a role working directly with Clarke “on a number of initiatives which will leverage the skill and scale of Tesco”, the retailer said at the time of his switch.

One person familiar with Tesco describes Robbins as Clarke’s “fixer”, having operated in Asia and Europe with him for many years and developed a strong working relationship.

Roberts says: “He has a big part to play in the execution of Phil Clarke’s strategy.”

Chris Bush, UK chief operating officer

Bush replaced Robbins as UK chief operating officer after heading the successful Tesco Lotus business in Thailand since April 2010.

Bush, who started on the shopfloor, developed strong skills in non-food and consumer analysis while he was boss in Malaysia, and later had to negotiate a swift clean-up operation after heavy flooding hit the Thai business.

He said of Tesco in 2010: “It’s a very supportive business. I love its values and I love the core purpose of the business.”

Ken Towle, online food and internet retailing director

Laurie McIlwee and Ken Towle are among those poised to play key roles in Tesco’s revival

Laurie McIlwee and Ken Towle are among those poised to play key roles in Tesco’s revival

Towle was parachuted in to take control of Tesco’s online business in March 2011 and has approached the job with his sleeves up.

The former boss of Tesco China relaunched Tesco’s non-food website last week and has expanded the network of ‘dark stores’ in London. A Tesco lifer who has been with the retailer since 1985, he has largely worked in UK operations.

Black says: “He’s just come back to the UK. He has got quite a bit to do – dotcom and remote shopping are increasingly important parts of Tesco’s business and he is improving the functionality of what it does.”

Laurie McIlwee, chief financial officer

Laurie McIlwee

Laurie McIlwee

McIlwee will be carefully looking at how much Tesco invests into its UK business to revamp stores and deliver other improvements. It is thought that between £300m and £400m will be put into the pot to refresh the estate.

McIlwee joined Tesco in 2000 as UK finance director after nine years with PepsiCo. He has also been Tesco’s distribution director.

David Wood, UK marketing director

Wood joined Tesco in 2007 and has experience in marketing from Kraft Foods and Unilever, where he started out in 1992. The former dairy category director became commercial director in Hungary in June 2010 but is due to return to the UK imminently to look at marketing initiatives including the Big Price Drop.

Nigel Jones, non-food commercial director

Jones will replace Per Bank as UK commercial director for general merchandise and clothing and joins the UK board at the end of this month. Jones began at Tesco in 1991, has worked in general management roles and has been UK distribution director for the past three years.

Judith Nelson, UK HR director

Nelson has steadily moved up the ranks since joining as a graduate in 1993. She has been HR director in the UK and Ireland since 2010, leading 300,000 employees.

Nelson’s year has already been busy with the spotlight thrust on the company’s work experience and pension policies. With a strong focus on staffing and service likely to be ahead, expect her to play a pivotal role.

Andrew Yaxley, commercial director

Narrowly missing out on the top job when Brasher was appointed chief executive, Yaxley is charged with revamping Tesco’s fresh food offer. He will also oversee frozen foods and the group’s smaller-format Express and Metro stores. Highly regarded within the business, Yaxley was a key lieutenant of Brasher’s.

John Scouler, commercial director

Scouler is responsible for household, healthcare, baby and beauty products, in addition to his responsibilities for packaged foods, petrol and tobacco. He joined the UK board in October 2011.

Matt Atkinson, group digital and marketing officer

Poached from direct marketing agency EHS 4D in June 2011, Atkinson is working alongside Carolyn Bradley and Tim Mason to create a marketing plan.

Tesco is expected to use social media to drive growth, looking to expand its Twitter and Facebook following. Atkinson has worked on big brands including Barclays, Johnnie Walker and Volvo in the past as well as Tesco’s international business.

Tony Hoggett, managing director, Tesco Superstores UK

The former chief operating officer of Tesco’s Turkish business was brought back to the UK in May 2011 to look after its store portfolio, prompted by Tesco veteran David Woodfield’s decision to retire. Hoggett has a tough job following Clarke’s admission that Tesco does not need as many out-of-town hypermarkets as it once thought.

Benny Higgins, chief executive, Tesco Bank

Former RBS executive and Celtic youth team player Higgins will hope to deliver a strong financial performance producing profits that could be put to wider use. A number of analysts believe the bank could help fuel expansion in the UK and overseas.

Black says: “Tesco can only grow in a sensible way in grocery now but there’s still a lot of natural growth in non-food, financial services and telecommunications. The bank is a huge project to migrate out of RBS but Clarke has done the right thing. Expect the bank to grow at around 15% a year when they have the product range to come through.”

David North, UK corporate affairs director

North joined Tesco as government affairs director in February 2002, adding corporate responsibility to his area in 2004. He has also been private secretary to the Prime Minister and a senior policy adviser at 10 Downing Street.

North’s role will be key if, as expected, executive director for corporate and legal affairs Lucy Neville-Rolfe retires next January.