So Tesco has appointed two new non-execs. And one is a former Ikea CEO. The fact that he will be the only retailer on the company’s Main Board is surely fundamental? While the media attention has recently focused on the financials, the underlying issues faced by the company are retail ones. They have to do with a business which has lost its empathy with customers and forgotten how to sell to them. This is the background to the financial errors of judgement.
Whatever mea culpa might emerge from the various investigations, Tesco needs to wrest back control of its own destiny and this is all about retailing. Does it have the skills to do this? The huge decline in its share price doesn’t just hurt institutional shareholders. It makes senior executive retention and recruitment much harder. I suspect that just one retailer on the Main Board will not be enough