Philip Clarke CEO Tesco

Clarke is to step down as Tesco CEO

Philip Clarke is to step down as CEO of the UK's largest supermarket, Tesco, and be replaced by Unilever's Dave Lewis.

The news comes alongside an announcement from the retail giant that current trading conditions had been more challenging than anticipated, and that sales and trading profit for the first half of the year were below expectations.

Clarke will continue in his role until 1 October, 2014, and then stay on support the transition to Lewis until the end of January 2015.

Tesco chairman, Sir Richard Broadbent, said: 'Having guided Tesco through a substantial re-positioning in challenging markets, Philip Clarke agreed with the board that this is the appropriate moment to hand over to a new leader with fresh perspectives and a new profile.

'Current trading conditions are more challenging than we anticipated at the time of our first quarter interim management statement on 4 June. The overall market is weaker and, combined with the increasing investments we are making to improve the customer offer and to build long term loyalty, this means that sales and trading profit in the first half of the year are somewhat below expectations.'

Broadbent added: 'Philip has done a huge amount to set a clear direction and re-position Tesco to meet the rapid changes taking place in the retail market. He has achieved a great deal across all areas of the business in the face of considerable pressures. The board are deeply grateful to Philip for his contribution to Tesco, over the last four decades, as well as more recently as chief executive. His has been an outstanding achievement.

'Dave Lewis brings a wealth of international consumer experience and expertise in change management, business strategy, brand management and customer development. He is already known to many people inside Tesco having worked with the business over many years in his roles at Unilever. The board believes that with Dave’s leadership Tesco will sustain and improve its leading position in the retail market.'

Clarke joined Tesco in 1974, working on the shop floor in Liverpool. He was appointed to the board in November 1998, later became the supermarket's international director, and was then made CEO in 2011.

He said: 'Having taken the business through the huge challenges of the last few years, I think this is the right moment to hand over responsibility and I am delighted that Dave Lewis has agreed to join us. Dave has worked with Tesco directly or indirectly over many years and is well-known within the business. I will do everything in my power to support him in taking the company forward through the next stage of its journey.'

On appointment, Lewis, who is also a non-executive director of the British Sky Broadcasting Group, will receive a basic salary of £1.25 million and standard benefits commensurate with his position.

He joined Unilever in 1987 after graduating in business studies from Trent business School, Nottingham.

Over nearly 28 years, Lewis has worked in a variety of roles with Unilever, which have taken him across Europe, Asia and the Americas. His last three roles were chairman for Unilever in the UK and Ireland, president for the Americas and his current role as global president, personal care.