CBC to the checkout: the Corkman running Britain’s biggest supermarket

Ken Murphy’s Tesco closes in on Dunnes as the profits roll in

When Ken Murphy took over in 2020, Tesco's shares were trading at £212. As of Thursday last week, it is up to over £503.

Corkman Ken Murphy has been at the helm of the UK’s largest supermarket chain, Tesco, for just over six years now and in that time the company has seen its sales increase nearly 18% in a very competitive low margin sector, its operating profit up 18.4%, and its share price more than double.

While a newcomer to the grocery sector, Mr Murphy had a long career prior to this appointment in the retail sector — specifically with pharmacy chain Boots where he worked for more than 20 years eventually reaching the ranks of chief operations officer.

When he was appointed group chief executive of Tesco in October 2020 he became only the second person from outside of the firm to take the top job since its founding in 1919.

In Ireland, Tesco has been nipping at the heels of Dunnes Stores for quite a long time. The Irish supermarket group has long commanded the top spot when it comes to consumer spending on groceries with Tesco often in second place.

According to the most recent data from Worldpanel by Numerator, in the 12 weeks to September 6, Tesco’s share of Irish consumer supermarket spending stood at 24.1% with Dunnes Stores slightly ahead at 24.3%. However, both of these are well ahead of the next nearest competitor SuperValu which holds 19.2% market share.

Born in Cork, the businessman was educated at Christian Brothers College in Cork and went to college in University College Cork where he studied commerce before training as an accountant with Coopers & Lybrand which is now PwC. He would also go on to complete an MBA at Harvard Business School.

He would later start his career at Procter and Gamble before moving on to become the finance director at Alliance Unichem which would eventually be acquired by Boots in 2006.

Through his years with Boots, he held numerous titles including managing director of health and beauty, international and brands from 2013. He later became the joint chief operating officer at Boots UK and Ireland before being moved up to executive vice president, chief commercial officer, and president of global brands at Walgreens Boots Alliance.

Walgreens Boots Alliance was formed in 2014 when the US pharmacy firm Walgreens acquired the full equity share of the Boots chain.

He stood down from his position with Walgreens Boots Alliance in 2018 and moved his family home from the US. It wasn’t until a year later, in October 2019, that it was announced that Tesco chief executive Dave Lewis would be stepping down from his position with Mr Murphy chosen to take the top job.

The company, which has more than 190 stores across Ireland, last week confirmed a new Tesco Express for Ballincollig will open next month.

In the UK, Tesco has by far the largest share of total consumer spending on groceries. Data from Worldpanel by Numerator shows that in the 12 weeks to September 6, consumers spent just over £10bn (€11.8bn) in the company’s stores representing a market share of 27.8%.

The next nearest challenger to Tesco in the UK has been Sainsbury’s whose share of consumer spend stood at 15.2%.

Between its 2020 annual report and its 2026 annual report, which encompasses Tesco’s financial year which ends in February, the company’s group sales increased from £56.5bn (€66.74bn) to £66.6bn (€78.7bn) and its operating profit was up from £2.52bn (€2.97) to £2.98bn (€3.53bn).

When Mr Murphy took over in October 2020, the company’s shares were trading at £212 on the London Stock Exchange. As of Thursday last week, it is up to over £503 (€594).

Last week, the supermarket giant reported a jump in sales during the first half of its current financial year amid an online shopping boost leading it to raise its annual profit outlook.

The supermarket chain said sales totalled £33.8bn (€39.84bn) for the 26 weeks to August 29. The company revealed its adjusted operating profit jumped by 6.3% to £1.8bn (€2.12bn).

During the summer, it was reported that Mr Murphy made £10.8m (€12.75m) last year, about £1m more than the year before, as the UK’s biggest supermarket hit its highest share of the market in a decade.

Ken Murphy could make even more this year after being handed a 3% rise in basic pay to £1.54m (€1.77m), and cutting food waste was scrapped as a target for his long-term bonus, according to Tesco’s annual report.

Last year’s pay included £1.51m (€1.78m) in basic pay, a £3.4m (€4.01m) annual bonus and a £5.7m (€6.73m) long-term bonus, which includes shares in the company.