The chief executive of Tesco’s (LON:TSCO) UK business Charles Wilson is stepping down from his position after being diagnosed with throat cancer, the blue-chip grocer has said. Wilson, the former chief executive of Booker Group, took the reins at the supermarket’s UK unit earlier this year following the group’s tie-up with the wholesaler.
Tesco’s share price has fallen into the red in today’s session, having given up 1.15 percent to 256.90p as of 09:35 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.04 percent lower at 7,684.59 points.
Charles Wilson to step down
Tesco announced in a statement this morning that Charles Wilson will step down as CEO Tesco UK & ROI and from the group’s board. He, however, will remain on the group’s executive committee and will focus on leading the Booker business.
Wilson was diagnosed with cancer earlier this year, and underwent radiotherapy during May and June. Tesco explained that while he had responded well to treatment and all the signs were that it had been successful, there was a need for him to ‘remain vigilant in his recuperation’.
Jason Tarry, currently the group’s chief product officer, will become the chief executive of Tesco UK, while Andrew Yaxley, currently CEO Ireland, will be promoted to chief product officer, with both to report to chief executive Dave Lewis. The supermarket said that all changes will be effective from July 16.
Analyst ratings update
Both HSBC and Shore Capital reaffirmed Tesco as a ‘buy’ this month, without specifying a price target on the shares. According to MarketBeat, the blue-chip grocer currently has a consensus ‘buy’ rating and an average price target of 248.69p.