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‘Drastic Dave’ takes on TescoPROFILESBy Laura French Tuesday, November 4th, 2014

'rast!" ave'# Tes"o $EO ave Le%!s had a tou&h ob o( h!s ha(ds ta)!(& over *rom Ph!+!

$+ar)e, but h!s e-"!e(t aroa"h a(d emhas!s o( tra(sare("y have see( the bra(d staystro(& !( d!-"u+t t!mes

New Tesco CEO Dave Lewis has a lot on his plate if he is to rescue

Britain’s biggest retailer fro crisis an! succee! in the afterath of 

a controversial accounting scan!al

 "ust a *e% years a&o, Tes"o %as !( the he!&ht o* !ts heyday. The mu+t!(at!o(a+ reta!+erhad see( "o(s!ste(t ro/t &ro%th *or 1 "o(se"ut!ve years a(d share r!"es had a+mostuadru+ed !( the 20 years to 200.

Ro++ o( seve( years a(d the !"ture !s some%hat b+ea)er3 !( !ts +atest /(a("!a+ rev!e%,reta5 ro/ts *or the /rst ha+* o* 2014 %ere revea+ed to have +ummeted 62 er"e(t to7112m. 8 729:m overstateme(t !( !ts ro/t &u!da("e rovo)ed "o(troversy a(d a +o(&ru((!(& !(vest!&at!o(, +ead!(& to the d!sm!ssa+ o* e!&ht e5e"ut!ves a(d a heavy burde(%e!&h!(& o( the shou+ders o* Tes"o;s +eader.

 That +eader, *ormer

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 @or)sh!rebor( Le%!s +eat stra!&ht *rom Nott!(&ham Tre(t ust as !t%as revea+ed the reta!+er %ou+d (ot be rea"h!(& !ts ro/t *ore"asts. Sa+es had droed

http://www.theguardian.com/business/2014/jul/21/profile-dave-lewis-tesco-unileverhttp://www.theguardian.com/business/2014/jul/21/profile-dave-lewis-tesco-unilever

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:.1 er"e(t !( the three mo(ths to Aay 2C > eu!va+e(t to reve(ue +osses o* 71.4b(a""ord!(& to ?SB$ a(a+ysts > a(d !ts mar)et share *e++ yearo(year *rom :0.C to 26er"e(t. But $+ar)e had +ed&ed a*ter that (e%s that he %as J(ot &o!(& a(y%hereK,a""ord!(& to The Telegraph.

es!te the rom!ses, $+ar)e dearted a*ter 40 years %!th Tes"o a(d arou(d three +ess

tha( *ru!t*u+ years as $EO. ?e;d had b!& boots to /++ a*ter the dearture o* S!r TerryLeahy %ho, !( h!s *ourtee(year st!(t at the he+m, had &ro%( the reta!+er !(to the th!rdb!&&est !( the %or+d3 Tes"o had see( reta5 ro/ts h!)e *rom ust 7C0m !( 166 to7:.4b( !( 8r!+ 2010, %!th "ustomer +oya+ty boosted by Leahy;s +au("h o* the su""ess*u+$+ub"ard s"heme.

 That su""ess %as reversed u(der $+ar)e > (e%s bro)e !( 8r!+ 201: that Tes"o had see(!ts /rst dro !( year+y ro/ts !( (ear+y 20 years. 8*ter that, +!)e*or+!)e sa+es "o(t!(ued to*a++, %!th a C.C er"e(t dro see( bet%ee( +ate =u+y a(d O"tober th!s year.

$+ar)e;s de"!s!o(s > a(d h!s reutat!o( *or ma)!(& the most o* a $EO;s er)s, +!)e hav!(&a "hauMeur > have(;t bee( the o(+y *a"tors dr!v!(& Tes"o;s de"+!(e. The r!se !( o(+!(esuermar)et sho!(& a(d the !("reas!(& ou+ar!ty o* d!s"ou(t suermar)et "ha!(s !sa+so +ay!(& a s!&(!/"a(t art a""ord!(& to a(a+ysts. I( =u(e, Th!s Is Ao(ey reorted thatthe 2: er"e(t o* overa++ ro/ts.

Reta!+ a(a+yst Ne!+ Sau(ders be+!eves Le%!s has ha(d+ed the s"a(da+ %e++, attemt!(& to+oo) to the *uture %h!+e be!(& oe( about the !(vest!&at!o(. That oe((ess *orms art o* a b!d to "ha(&e Tes"o "u+ture a(d !mrove tra(sare("y to avo!d the tyes o* s"a(da+that have dama&ed the reta!+er;s reutat!o( !( the ast > (ot +east the horsemeat"o(troversy that se(t sho")%aves out !( 201:.

Le%!s made h!s des!re "+ear %he( he o!(ed. 8*ter the ro/t ho+e %as revea+ed, he %rote!( a( ema!+ to staM see( by The Telegraph# JTur(!(& our bus!(ess arou(d %!++ reu!re"ha(&e !( our "u+ture e %a(t to %or) !( a bus!(ess %h!"h !s oe(, tra(sare(t, *a!ra(d ho(est.K

 That;s erhas %here Le%!s;s aea+ +ay *or Tes"o > as the /rst outs!der to ta)e "har&e,he;s !( a stro(& os!t!o( to "ombat the "u+ture that has bee( e(tre("hed !( Tes"o *or

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10876016/Tesco-boss-Philip-Clarke-insists-he-wont-resign.htmlhttp://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10876016/Tesco-boss-Philip-Clarke-insists-he-wont-resign.html

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severa+ years. But the "oma(y;s de"!s!o( a+so +!es !( the *a"t there %ere very *e%su!tab+e eo+e ava!+ab+e %!th!( reta!+ *or the ro+e, a""ord!(& to Sau(ders.

 Ta)!(& o( somebody *rom outs!de !s r!s)y. 8+thou&h Le%!s does have a stro(&u(dersta(d!(& o* the rodu"ts Tes"o se++s throu&h h!s t!me at someth!(& he se+*dere"!at!(&+y mo")s. JThe b!t that !s

!(terest!(& !s that I have (ever ru( a sho !( my +!*eK, he sa!d !( a( !(terv!e% %!th TheStandard, add!(& that that;s to h!s adva(ta&e# J&reat reta!+!(& !( that seat has(;t bee(the th!(& that has %or)ed, so they do (eed a *resh erse"t!ve.K

?ead!(& a( FA$ /rm !s u(doubted+y d!Mere(t to +ead!(& a reta!+er. JThe ressures area +ot more !mmed!ate,K says Sau(ders. J@ou;re hav!(& to dea+ %!th the %ho+e ra(&e o* the roos!t!o(, !("+ud!(& the se++!(& e(v!ro(me(t.K 8(d that +a") o* reta!+ e5er!e("e !seve( more ev!de(t o( the rest o* the board, %h!"h Le%!s has re"e(t+y attemted tobo+ster by ao!(t!(& A!)ae+ Oh+sso( *ormer I)ea $EO a(d R!"hard $ous!(s *ormer$omass $EO as (o(e5e"ut!ve d!re"tors.

 Those "ha(&es to the board are amo(& the a"t!o(s the (e% "h!e* has a+ready ta)e( !(h!s b!d to rebu!+d Tes"o. Other moves made !("+ude do!(& a%ay %!th "hauMeurs *orse(!or d!re"tors, se++!(& Tes"o;s r!vate ets a(d %av!(& &oodbye to +ay!(& out ro/t&u!da("e %h!"h "aused the a""ou(t!(& s"a(da+ a(d e(su!(& +oss !( !(vestor trust.

But that +ast move !s !ro(!" &!ve( h!s !(s!ste("e o( the !morta("e o* tra(sare("y *orthe *uture o* the "oma(y. 8(d bes!des a *e% broad !(te(t!o(s out+!(ed redu"!(& the(umber o* !("+ud!(& !( h!s o%( +a(s.

htt#%%%.euroea("eo."omro/+esdave+e%!stes"o

http://www.bbc.co.uk/news/business-29735685http://www.independent.co.uk/news/business/news/tesco-shares-crash-as-new-chief-keeps-his-strategy-under-wraps-9815165.htmlhttp://www.independent.co.uk/news/business/news/tesco-shares-crash-as-new-chief-keeps-his-strategy-under-wraps-9815165.htmlhttp://www.bbc.co.uk/news/business-29735685http://www.independent.co.uk/news/business/news/tesco-shares-crash-as-new-chief-keeps-his-strategy-under-wraps-9815165.htmlhttp://www.independent.co.uk/news/business/news/tesco-shares-crash-as-new-chief-keeps-his-strategy-under-wraps-9815165.html