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New Tesco Boss - Another Scouser, but better

Vlads Quiff

Well-Known
Member
The new boss of Tesco is a red........................................



Looking back, though, it's clear that Clarke's name has been pencilled in for some time. The recent slew of major Tesco developments has centred on international expansion. It's been the big Tesco story of the past few years.

As maintaining the rate of growth in the UK is proving more and more difficult in the face of official industry inquiries and intense competition from a revitalised Asda, Sainsbury's and Morrisons, not to mention often local opposition wherever Tesco decides to locate a branch, the rest of the world has proved a happier hunting ground.

It has not been easy. Other groups have struggled to make headway outside their domestic bases. That, too, points to the anointment of Clarke — he has been responsible for implementing a strategy that sees Tesco adopt the local practices and customs of a new market rather than impose its own British supermarket methods.

That has meant copying foreign “wet†or open food markets rather than focusing on the British love of produce being sealed in plastic bags. In China, Tesco customers catch their own fish out of in-store paddling pools; in South Korea, it has built village halls inside its branches.

Physically, Clarke looks like a fuller version of his mentor, Leahy. On paper, too, he bears a marked similarity to Leahy. They're both Scousers, both Tesco through and through. Clarke grew up in the Old Swan area of the city and went to the Blue Coat School, Liverpool's only grammar school. He started work at the company's former Allerton Road store in Liverpool when he was still a schoolboy.

He has remained close to his roots, attending Liverpool University, where he read economics, and supporting Liverpool FC. In that, too, he is like Leahy, who went to university only slightly further afield, in Manchester, and also returns to Merseyside whenever he can. Indeed, the only difference between them is that Clarke follows Liverpool and Leahy Everton.

Clarke, though is more outgoing and voluble than the quiet Leahy. “A cheeky Scouse bastard†is how he was des-cribed on one trip on which he held up a packet of pink thongs to illustrate a point he was making about the merits of different types of packaging.

He talks a lot and is funnier than Leahy. He's flash, too — regaling friends with how his sweaters are made of cashmere and how he flew his family (he is married with two children and lives in Hertfordshire, close to Tesco head office) by private jet to Istanbul to watch Liverpool win the Champions League in 2005.

These, though, are marginal traits, and are him playing to the crowd. He likes to hide his intelligence, preferring to be seen as one of the boys. In reality, especially where Tesco is concerned, Clarke is disciplined, focused and serious. After managing stores — the flagship branch in Sandhurst was one of his — and becoming regional manager for Scotland and the North of England, he made his name within the group for managing its logistics and IT side. It's a crucial aspect of the business, and one that Tesco has turned into a science. Clarke earned the sobriquet of Mr Supply Chain — so accomplished was he.

He was one of the key figures in the introduction of CR, or continuous replenishment, the policy not loved by environmentalists that sees Tesco make deliveries to its stores twice a day. He is also credited with “lean theoryâ€, the group's drive to maximise efficiency and to keep to a minimum stock held in depots. In IT, he grew the Clubcard loyalty card to be the undisputed industry leader.

Latterly has come the international onslaught. It has meant Clarke has almost 2000 stores and nearly two-thirds of the group's entire retail space on his watch.

Along with China and South Korea, India — where Tesco has struck a partnership with Jaguar Land Rover owner Tata — is another success. The plan is to launch 50 stores there in the next five years, supported by their own, local cash-and-carry outlets.

It's not always been plain sailing. Tesco was embroiled in a row in Thailand last year when it pursued two Thai journalists and a politician after they accused it of being too “aggressive†in pursuit of new branches.

But the blips have been few. Clarke's rise has been steady and relentless. Just like Tesco's in fact.
 
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