Tue, 23rd Apr 2019
Tesco Plc will soon have Gerry Mallon joining the group, to run the financial services arm. Mallon will be joining from Ulster Bank, where he has been serving as Chief Executive. He has resigned from that position, and made a formal announcement about his intent to join Tesco earlier this month.
Current Tesco Bank CEO Benny Higgins will be retiring in February, and Mallon is expected to join Tesco Bank as soon as a replacement is found for him at Tesco Bank. Mallon is also likely to taking a spot in Tesco’s main executive committee. He also chairs the Irish Football Association.
Tesco PLC ended the week with its shares up by 1.8 percent, and there appears to be some optimism about the appointment. As one of the Big Four supermarkets, Tesco has been through some challenging times in the last couple of years, facing price competition versus not just other major supermarkets, but also out of town discounters such as Aldi and Lidl. The company has struggled to differentiate itself as Sainsbury’s revamped their stores to offer a more luxurious shopping experience, and Asda became price-focused. The banking arm of the company has been sheltered from those challenges somewhat, but faces others in a difficult financial sector. The appointment of the former Ulster Bank CEO is being seen positively, and many analysts view Tesco overall as a company with some strong growth potential for the coming year, along with other rising stars such as BAT and Just Eat PLC.