The tenure of Tesco chief executive Philip Clarke may be only a year old, but no one can fault it for a lack of drama.

The tenure of Tesco chief executive Philip Clarke may be only a year old, but no one can fault it for a lack of drama. From the decision to quit Japan, to the rollercoaster ride that is the domestic operations, Clarke has been forced to confront a host of tough calls.

To his credit, he’s developing a reputation for decisive action and firm leadership. Working his way, as he is, from out of Terry Leahy’s shadow, that’s no mean feat.

Against this backdrop, the coverage surrounding the departure of Richard Brasher has centred on one line taken from Tesco’s internal communication that spoke of a need for “one captain” at the helm of the ship.

Tesco’s UK operations account for close to 70% of trading profits. Its importance to the retailer’s performance and share price requires that the domestic turnaround plan does not flounder. That has left Clarke with little option but to take a direct approach.

A clash with his UK chief was inevitable. But there are concerns Clarke will be unable to shoulder the burden of running both the group and its biggest market. Moreover, Brasher is the latest in a line of high-profile exits, and the lack of significant others at the top, with comparable experience, leaves the chief executive exposed. There’s been a generational change at Tesco and our story spotlights the personalities likely to play key roles.

Blessed with international experience, in touch with the consumer and digitally minded, these rising stars may better reflect the new competitive environment. But, moulding them into an effective leadership team is one more challenge for Clarke to face.

Power shifts to tech giants

Days after launching its latest iPad, Apple – which is now just as significant a retail force as the traditional giants – revealed it would return to paying quarterly dividends for the first time since 1995, helping push its share price close to $600. Amazon, meanwhile, unveiled its second-largest acquisition, the purchase of Kiva Systems, which manufactures robots used in fulfilment centres. The moves reflect the pace of growth at both companies.

Apple says it will become one of the largest dividend-payers in the US, while Amazon is investing heavily for further expansion. It is an extraordinary turnaround since the dotcom crash a decade ago and another reminder of a defining shift in the balance of power in global retailing.

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