Tesco is to launch a series of new brands over the next few weeks as it seeks to bolster its UK performance.
According to the Financial Times, group chief executive Phil Clarke will launch the brands in both the food and non-food business. They will be Tesco-owned brands, but will not be branded with the Tesco name.
Earlier this month, Clarke said he wanted to create new brands as part of his new strategy. He cited the success of its clothing brand F&F, and electricals brand Technika.
Clarke admitted earlier this year that its performance in the UK is trading “below par”.
In the non-food business, Clarke has brought Terry Price, a Tesco and Walmart veteran, back from China to the UK to lead its general merchandise business.
Tesco has also announced a new approach to its Executive Board remuneration in its annual report today. The changes include an end to share options and an increase in the Directors’ shareholding guidelines.
Tesco will move from its current four long term incentive plans to a single plan, with two performance measures.
All executives will participate in the same plan, and US boss Tim Mason will no longer receive annual or long-term awards in respect of the US business.
Chairman David Reid said: “Over the past year we have consulted shareholders for their views on how we reward executive directors. We have designed a new structure which is simpler and more collegiate, with clear strategic financial targets, delivering broadly the same levels of remuneration as before but in a better way and more aligned with the interests of our shareholders.
“We will apply the same performance measures through the business to the top 500 Tesco managers, ensuring that shareholders’ interests are embedded throughout the leadership of our business.”
Tesco has also announced its biggest ever ‘Shares in Success’ payout to staff, with 225,000 staff in the UK receiving a share of a £110m bonus pot.