Ten years 'behind the counter' for Tesco boss

Tesco boss Terry Leahy today clocked up 10 years at the helm of UK’s biggest supermarket chain.

Leahy, who was knighted in 2002 for his services to food retailing, has been credited with helping transform the supermarket from the UK’s number two chain to the clear market leader and an international force.

Despite the milestone Leahy was keeping a low profile today.

The supermarket said it was business as usual at the company’s headquarters in Cheshunt, Hertfordshire, as the decade in power passed without any fanfare.

A Tesco spokesman said: “Really, it’s a day like any other here in Cheshunt as we get on with the business of serving our customers.”

Leahy’s tenure has been a successful one for the group, which now commands a market share of more than 30% in the UK, while closest competitors Asda and Sainsbury have secured just 33% between them, according to the latest figures from research group TNS Worldpanel.

The retailing giant also now operates in 12 markets internationally – a three fold increase since Leahy took over from the then chairman Lord MacLaurin.

And pre-tax profits have soared from less than £1bn (€1.48bn) 10 years ago to more than £2bn (€2.96bn) today.

The group said in its interim results last October that it made £1.09bn (€1.62bn) in the six months to the end of August alone, with worldwide sales of £22.7bn (€33.7bn), equivalent to £873m (€1.3bn) per week and £5.2m (€7.7m) per hour.

Charles Stanley retail analyst Sam Hart said: “It’s very much a team effort at Tesco and Sir Terry inherited a good business from Lord MacLaurin, but certainly he has been a key influence in its success.

“Anyone who has presided over a business for 10 years and has delivered such a phenomenal performance is an extremely good leader.”

Leahy was also praised for his lack of ego, alongside the ability to retain a good management team around him, such as group marketing director Tim Mason, who was appointed last year to run the US business.

One analyst said: “It’s worth taking into account that he’s been very careful in keeping a trusted senior management team and convincing them that their career aspirations can be fulfilled at Tesco even if they don’t have the top job.”

Leahy, 50, joined Tesco in 1979 and held a number of marketing and commercial positions before being appointed to the board in October 1992 and then chief executive on February 21, 1997.

Speculation has mounted recently that Leahy may look to other challenges, such as heading up the NHS for the Government.

But analysts expect him to remain at Tesco to continue leading the group’s international expansion.

Mr Hart said: “In the UK there’s still room for expansion in terms of non food growth and there’s a hell of a lot to do in terms of getting on a global par with the likes of Wal Mart.

“He’ll want to stay and see as much overseas expansion as he can.”