The terms of Simon Calver’s exit from Mothercare are perplexing .

The terms of Simon Calver’s exit from Mothercare are perplexing .

The retailer, which warned on profits after a poor Christmas, disclosed on Monday that Calver would step down from his role immediately and would leave by the end of March.

If Calver has resigned, why should he be paid £250,000 in lieu of six months’ notice, as well as £44,540 in compensation for contractual benefits such as a pension contribution?

Such generous terms will no doubt mean that Mothercare chairman Alan Parker should have his pick
of would-be successors to Calver.

Assured of being so well looked after should they leave part-way through their attempts to turnaround Mothercare, there should be no shortage of candidates.

One only wonders why Calver didn’t get a bonus too.

Big space is becoming a big problem

Tesco once again took the axe to UK space growth plans when it held an investor day on Tuesday.

Having already flagged the end of the grocery space race, chief executive Philip Clarke’s latest scaling back of property requirements is yet another signal of how the dynamics of retail are changing.

Reduced capital expenditure of £2.5bn a year for at least the next three years will be focused on a faster revamp programme for its existing big stores, and on opportunities presented by convenience and online growth.

The switch of focus away from big space is the right thing to do and Clarke may also have helped out quoted rivals.

Activist investors reportedly want grocers such as Morrisons to spin off their store estates, turning the retailers into tenants.

However, as Clarke’s decision shows, the big grocers cannot remain in thrall to big space – especially if it’s owned by other people. The burden would potentially bring some businesses down.