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Tesco UK head to quit

posted 15 Mar 2012, 08:14 by Mpelembe   [ updated 15 Mar 2012, 08:15 ]

The world's third biggest retailer says the head of its biggest market is to quit just two months after a profit warning.

REUTERS - It's been a troublesome few months for the world's third largest retailer.

In January Tesco issued a profit warning, their share value has gone down 18 percent and market share has fallen to levels not seen since 2005.

Now, the firm says it's UK chief executive, Richard Brasher, will be quitting his post after less than a year.

The group CEO, Philip Clarke says he'll take on the UK role.

Just 10 days ago he and Brasher fronted an announcement to create 20,000 new jobs in Britain and invest in stores.

Last month Tesco's chief operating officer was moved from his post after he sold stock ahead of the profit warning.

Tesco is also trying to raise the age at which its staff can claim their pensions, from 65 to 67 - it's the first private company to do so after the UK government increased the retirement age.

Analysts are saying it was only a matter of time before Brasher would have to quit after the profit warning.

Clarke is insisting he hasn't had a row with Brasher who was responsible for Tesco's "Big Price Drop" campaign launched in the Autumn.

Brasher's been with the company for 26 years. He steps down immediately and leaves Tesco in July.

Joanne Nicholson, Reuters