Some observers have suggested that Mr Price has paid the ultimate price for Tesco’s below par non-food performance in the UK in 2012. Speculation in the industry points to Price’s demise being caused, in part, by the negative effects of the ‘every day low price’ (EDLP) plan, and the ditching of half price deals on toys. Mr Price was apparently close to retirement, but his departure is also believed to reflect Tesco’s shift towards online in the non-food sector.
Tesco’s CEO, Philip Clarke, said that the company had to continue to innovate to combat the competition presented by the huge shift to online, which has hit Tesco’s non-food business particularly hard. He said: “If you dare not take risks for fear of failure, then decline is inevitable.”
Replacing Price, Neela Mukherjee, UK general merchandise director, will now take control of online and offline general merchandise across the division.