Leahy leaves - and will BP boss be next?
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The end of Sir
Terry Leahy's reign at Tesco is in sight.
He announced his retirement - he steps down next Spring -
with a rather biblical line: "My work is done," he said.
Rival supermarkets that have been pushed down the pecking order
by Leahy's strategy should not rub their hands in glee.
No individual can achieve the success he has without a strong
team. That he has chosen most of them suggests that he has played a
key part in the selection of his successor - also a Tesco insider -
and no doubt inculcated with the Leahy doctrine. It will be
business as usual at Tesco.
Leahy has to be rated one of the top retailers of his
generation. He followed Sir Ian MacLaurin in transforming Tesco
from a rather cheap-and-nasty chain with a pile 'em high philosophy
into a mega retailer with nearly 5,000 outlets worldwide. Its
supply chain has been transformed. It has a finger in many
financial pies. Its Clubcard is a great data-capturing loyalty card
and superior to its Nectar rival. Turnover has jumped year on year.
The share price has out-performed FTSE competitors.
But will the jury give Leahy 10/10?
I think not. Tesco has steamrollered many small retailers out of
business and then replaced them with smaller outlets. It has
applied pressure to local councils in planning issues. It has
exerted huge price pressure on suppliers, not least farmers,
although it has tried to improve its image with local sourcing -
especially from Kent growers - in recent years.
It has not always been the cheapest, and some customers complain
that its fresh produce is not as good as it should be.
But you cannot argue with customers. They have flocked to Tesco,
making it the most successful supermarket. It has chimed with the
times. Its customer demographic looks younger than rivals such as
Sainsbury's. Sir Terry has pushed the right buttons, seized the
moments, led the field. You must give him credit for that.
That he had been low-profile has not always endeared him to a
media that prefers Branson charisma or Philip Green chutzpah. But
the quiet man of retailing will be a hard act to follow.
Tony Hayward is gaffe-prone. The BP boss is already one of the
most hated men in America for the horrendous oil leak, yet every
time he speaks, he offers more avenues of attack to President
Obama.
Suggesting that he will be glad when the crisis is over because
he wants his life back is crass to say the least when hundreds of
people have lost their livelihood, when normally packed holiday
beaches are empty, and pelicans flap helplessly in an unwanted
overcoat of constricting oil. Heartbreaking. Hayward is not helping
Britain’s or business’s cause. He needs some PR coaching if he
is to avoid being another victim of the disaster.
Wednesday, June 09 2010
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