'You can't have two captains' declares Philip Clarke as he takes direct control of UK operations at Britain's largest retailer
Tesco chief executive Philip Clarke declared "you can't have two captains" as he took direct control of the supermarket group's UK operations on Thursday morning.
Richard Brasher, head of Tesco in the UK, has quit the board with immediate effect. The 50-year-old will leave Britain's largest retailer, where he has worked for 26 years, in July.
His departure follows reports of tensions between Brasher and the chief executive. Clarke was forced to issue a shock profit warning in January which wiped £5bn off the value of the company.
Clarke last week dismissed suggestions of a rift, but on Thursday morning was more outspoken: "You can't have two captains in a team," he told Reuters.
He also stressed the abrupt exit of Brasher did "not signal another [profit] warning". Market research data suggests Tesco has been making some progress to recover lost ground in the UK in the last two months. In January the supermarket's UK market share slipped below 30% for the first time since 2005.
In a statement to the stock exchange, Clarke said he would personally take over responsibility for UK operations "at this very important time".
He added: "This greater focus will allow me to oversee the improvements that are so important for customers. I completely understand why Richard has decided to leave and want to thank him for the great contribution he has made over many years.
"He will leave behind a UK business which has very strong plans for improvement, and over the last two months these plans are beginning to show progress, in line with our expectations. I am more determined than ever that these improvements in the UK will result in a better Tesco and an even better shopping trip for customers."
Brasher had only been in charge of the UK and Irish business since March last year and has sat on the board for eight years, previously holding a series of senior executive posts in marketing, commercial and store operations.
His departure marks another step in the stealthy reshuffle of senior UK executives in the wake of last Christmas's disappointing results.
Marketing director Carolyn Bradley left the UK board to take up the new role of group brand director. Bob Robbins, who effectively served as deputy to Brasher, also left the board for a newly created role at group level. Tesco insisted the shifts did not amount to demotions.
Bradley is replaced by David Wood, the commercial director in Hungary who has previous marketing experience with Unilever and Kraft. Meanwhile, Robbins is replaced by seasoned Tesco executive Chris Bush, who is returning from a role running operations in Thailand.