Tesco chairman stays on to smooth Sir Terry Leahy transition
DAVID REID has pledged to stay attached as chairman of Tesco for at least another 18 months to hold boardroom stability at Britain’s biggest retailer, insiders say.
Sir Terry Leahy, the far-seeing-serving chief executive, said last week that he would step in a descending course next year. It is thought that Reid, 63, had been considering stepping down as a director of the grocer, but has now committed to stay.
He is tipped to remain for at smallest several months once Philip Clarke, the international director, succeeds Leahy next March.
Analysts expect Tesco to formally start the hunt for Reid’s follower next year. They think Tesco will look outside the company conducive to an independent chairman, bringing the retailer’s board into rope with best corporate governance practice.
Reid is not considered independent on this account that he was a former executive director of Tesco and has sat up~ the retailer’s board since 1985. He was elevated to the chairmanship in April 2004.
Tesco insiders cautioned that in ~ degree decision had yet been taken on Reid’s departure fix the ~ of.
The news comes as Tesco and J Sainsbury are expected to show this week that UK sales growth has ground to a stand. The first-quarter figures from both companies are tipped to be the weakest for five years as Britain’s supermarket groups support from a steep fall in food price inflation compared with the like period last year and sluggish consumer spending. Tesco’s cluster performance, however, is likely to be boosted by sales from its rope -expanding overseas business.
Meanwhile, it emerged this weekend that Tesco is in discussions to corrupt Kim’s Club Mart, a 50-strong local chain in South Korea beneficial to about £160m.
If the deal proceeds, Tesco’s Homeplus enslave would overtake Lotte, the domestic market leader, to become the largest supermarket congeries in South Korea.