Cheshunt, U.K. – Philip Clarke, CEO of leading U.K. grocery and general merchandise retailer Tesco plc is publicly resisting calls for his resignation following a 6% decline in annual profits and 3% quarterly drop in U.K. same-store sales. Tesco has reported falling profits for two consecutive years following 20 years of continual profit growth.
In addition, Tesco has been undergoing a turnaround plan in the past two years but still lost market share in its core U.K. market, and has been mostly unsuccessful in attempts to expand to new global market such as the U.S., and Japan. Sir Terry Leahy, one of Tesco’s top 20 investors, has been among those openly requesting that Clarke leave his position.
However, in public comments to the media, Clarke said he intends on staying at his job and that price cutting measures at Tesco are already starting to produce increases in volume. Tesco has cut prices on products including milk, eggs and chicken by 24%, with a reported resulting 30% boost in sales volume.