The boss of the
The shock departure came as Tesco warned that sales and trading profits for the first half of the year would be lower than expected.
Tesco has been struggling in the face of fierce competition from discounters
Tesco shares rose almost 2% in early trading, to 290p, despite the profits warning, reflecting hopes for the new boss.
The scale of the job facing Lewis was emphasised by the profits warning Tesco issued on Monday morning. The supermarket said trading conditions were "more challenging" than had been anticipated, blaming a weak market and the cost of improvements to their stores, for bringing profits "somewhat below expectations".
Recent industry data shows that Tesco appears to have lost more than 1m customer visits per week, worth £25m in sales, with its market share showing the biggest fall for at least 20 years.
Lewis becomes chief executive on 1†October. Tesco said that Clarke will be available until the end of January to help with the transition. Lewis will earn a salary of £1.25m, plus so-far undisclosed Tesco shares and benefits that are likely to push his take-home pay far higher. He will also pick up £525,000 in lieu of giving up his bonus from
Tesco chairman Sir
He said the board was deeply grateful to Clarke. "Philip has done a huge amount to set a clear direction and reposition Tesco to meet the rapid changes taking place in the retail market. He has achieved a great deal across all areas of the business in the face of considerable pressures."
Clarke, who just six weeks ago said he had no plans to leave Tesco, said on Monday: "Having taken the business through the huge challenges of the last few years, I think this is the right moment to hand over responsibility and I am delighted that
The departure of Clarke, who joined the supermarket as a school-boy shelf stacker in 1974, means that by the end of the year both Tesco's top two managers will have left the company.
Tesco chief financial officer
Tesco's incoming boss, who is 48, has spent over three decades at
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