Grocery Giant Tesco Sets Its Sights on Ocado
Tesco's new boss won't have to do the same rescue job as his predecessor. But the battle against online and discounting rivals is just as intense.
Firefighter not needed this time.
Photo: BloombergKen Murphy, the new chief executive officer of Tesco Plc, finds Britain’s biggest grocer in much better shape than his predecessor did when he took charge. It has prospered during the pandemic, helped by its big out-of-town stores and the ability to ramp up online capacity much quicker than its more fashionable internet competitor Ocado Group Plc.
Taking the helm of a company in relatively decent health brings its own challenges. When Dave Lewis became CEO six years ago, he faced the worst crisis in Tesco’s 101-year history after an accounting black hole created a 250 million-pound ($323 million) profit shortfall. But it was obvious what he needed to do: Right the ship, strengthen the balance sheet and fight the increasing threat of German discounters Aldi and Lidl.