10th Mar 2014 14:12
LONDON (Alliance News) - Britain's biggest supermarket chain Tesco PLC is said to have held senior level discussions about replacing Laurie McIlwee as finance director, Sky News reported on Sunday.
McIlwee, who has served as the group's chief financial officer since 2009, could leave the company within the next few months, according to Sky News, which reported that McIlwee, has in the past been the focus of doubts expressed by unidentified City investors, and is said to have an "uncomfortable" working relationship with Tesco's Chief Executive Officer Philip Clarke.
Sky News reported that a formal search for a new finance director is not yet thought to be underway, but according to senior sources McIlwee's exit was now, "more likely than not" at some stage this year.
If McIlwee does depart, it would represent the latest stage of a sweeping overhaul of the executive management at Tesco, according to Sky News.
Tesco declined to comment to Alliance News on the story.
The UK supermarket giant, recently announced a round of price cuts in an effort to close the price gap with discounting supermarkets like Aldi and Lidl.
At its investor and analyst seminar on February 25, Tesco outlined its long term business plan, highlighting continuing investment in its key UK business, including a GBP200 million investment to drive down prices on everyday items, including cutting the price of a four pint bottle of milk to GBP1 from GBP1.39.
The plan also involves scaling back on store openings, stepping up existing store refurbishments, and increasing staff training to provide better customer service. Tesco said capital expenditure will be reduced to no more than GBP2.5 billion per year for at least the next three financial years, which it said it will focus on online and convenience growth, and on an accelerated refresh programme for its larger stores.
Tesco shares were trading 0.5% lower at 321.20 pence per share Monday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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