The chief executive of Tesco’s UK and Ireland business, Charles Wilson, is stepping down following treatment for throat cancer.
Wilson is the former boss of cash-and-carry group Booker and widely viewed as the likely successor to Tesco’s group chief executive, Dave Lewis. He took on the role at Tesco UK when the supermarket chain bought the wholesaler for £3.7bn earlier this year.
Tesco said Wilson had been diagnosed with throat cancer following an operation to remove his tonsils in April and had undergone daily radiotherapy during May and June.
“The good news is that Charles has responded very well to the treatment and all the signs are that the treatment has been successful,” Tesco said in a statement.
The supermarket group added that, given the nature of the illness and “the need for Charles to remain vigilant in his recuperation”, it was making changes within its senior leadership team.
Wilson will step down from the Tesco board but he will remain on the executive committee and will continue to lead the Booker business, reporting to Lewis.
The retailer said that as well as delivering the planned cost savings and growth from the deal between Tesco and Booker, Wilson would also contribute to the broader Tesco UK strategy.
Tesco shares fell by 1% after the announcement, making the grocer the biggest faller on the FTSE 100.
Jason Tarry, the chief product officer, will become chief executive of Tesco’s UK and Ireland business. The Ireland chief executive, Andrew Yaxley, will take over Tarry’s role.
All new roles will take effect from 16 July, Tesco said.
Nick Bubb, a retail analyst, said the change in leadership of Tesco’s core UK business was a shock. “The highly regarded Charles Wilson is the brains behind Booker and was widely expected to take over from chief executive Dave Lewis in due course,” he said.
Wilson was named as Tesco’s new UK boss in February, on basic pay of £575,000, with the idea that he would develop new hybrid formats. Plans included the rollout of the Chef Central “shop-in-shop” concept, selling catering-sized packs of goods such as oil and rice aimed at professional cooks.
After trialling the format in two locations, Tesco extended the trial by introducing some of the top-selling Booker lines into more than 50 stores.
