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| Tesco fast-tracks new finance chief Alan Stewart | Tesco fast-tracks new finance chief Alan Stewart |
| (about 2 hours later) | |
| Troubled supermarket giant Tesco has said that its new chief financial officer, Alan Stewart, is joining the company immediately, more than two months earlier than originally planned. | Troubled supermarket giant Tesco has said that its new chief financial officer, Alan Stewart, is joining the company immediately, more than two months earlier than originally planned. |
| Mr Stewart was previously in the same post at Marks and Spencer. He replaces Laurie McIlwee, who resigned in April. | |
| On Monday, Tesco stunned the markets by saying it had overstated its half-year profit guidance by £250m. | On Monday, Tesco stunned the markets by saying it had overstated its half-year profit guidance by £250m. |
| Tesco's shares sank 11% on Monday and fell a further 3.9% on Tuesday. | |
| The retailer has launched an investigation headed by Deloitte, and says it is now working to establish the impact of the issue on its full-year results. | |
| It has also suspended four executives, including its UK managing director, Chris Bush. | It has also suspended four executives, including its UK managing director, Chris Bush. |
| Tesco is also believed to have suspended its UK finance director Carl Rogberg, its food commercial director John Scouler and the head of food sourcing, Matt Simister. | Tesco is also believed to have suspended its UK finance director Carl Rogberg, its food commercial director John Scouler and the head of food sourcing, Matt Simister. |
| Appeal | |
| Mr Stewart was originally due to join Tesco on 1 December, but his start date was brought forward after negotiations with Marks and Spencer. | Mr Stewart was originally due to join Tesco on 1 December, but his start date was brought forward after negotiations with Marks and Spencer. |
| BBC business editor Kamal Ahmed says he has been told that the move came after a direct appeal from Tesco chief executive Dave Lewis to his counterpart at Marks and Spencer, Marc Bolland, who "graciously" allowed Mr Stewart to leave early. | BBC business editor Kamal Ahmed says he has been told that the move came after a direct appeal from Tesco chief executive Dave Lewis to his counterpart at Marks and Spencer, Marc Bolland, who "graciously" allowed Mr Stewart to leave early. |
| Mr Lewis's predecessor, Philip Clarke, stood down in July after his attempts to revive Tesco's fortunes through a £1bn turnaround plan failed. | Mr Lewis's predecessor, Philip Clarke, stood down in July after his attempts to revive Tesco's fortunes through a £1bn turnaround plan failed. |
| Analysis, Kamal Ahmed, BBC business editor: | Analysis, Kamal Ahmed, BBC business editor: |
| The announcement that Alan Stewart, the former finance director of Marks and Spencer, will start work today at Tesco - rather than the somewhat more leisurely 1 December - will bring some relief to investors, who have faced a battering over the last year. | The announcement that Alan Stewart, the former finance director of Marks and Spencer, will start work today at Tesco - rather than the somewhat more leisurely 1 December - will bring some relief to investors, who have faced a battering over the last year. |
| A business facing an accounting crisis with no chief financial officer was not exactly comfortable. | A business facing an accounting crisis with no chief financial officer was not exactly comfortable. |
| Sir Richard Broadbent, the chairman, will hope that the move will quieten those who believe that he should consider his position. | Sir Richard Broadbent, the chairman, will hope that the move will quieten those who believe that he should consider his position. |
| He certainly spent yesterday, when the accounting crisis broke, desperately trying to move Mr Stewart's start date forward. In that, at least, he has been successful. | He certainly spent yesterday, when the accounting crisis broke, desperately trying to move Mr Stewart's start date forward. In that, at least, he has been successful. |
| Last month, Tesco cut its full-year profit forecast from £2.8bn to £2.4bn, and said trading profit for the six months to 23 August was expected to be about £1.1bn. | Last month, Tesco cut its full-year profit forecast from £2.8bn to £2.4bn, and said trading profit for the six months to 23 August was expected to be about £1.1bn. |
| As a result of the change to its profit guidance, Tesco has pushed back the release of its interim results to 23 October, from 1 October. | As a result of the change to its profit guidance, Tesco has pushed back the release of its interim results to 23 October, from 1 October. |
| The investigation into the overstatement will be carried out by Deloitte together with Freshfields, the group's external legal advisers. | The investigation into the overstatement will be carried out by Deloitte together with Freshfields, the group's external legal advisers. |
| Discounters still winning | Discounters still winning |
| Tesco has been battling falling sales and a decline in its market share as discount chains such as Aldi and Lidl have gained in popularity. | Tesco has been battling falling sales and a decline in its market share as discount chains such as Aldi and Lidl have gained in popularity. |
| And there is "no sign yet of recovery" in sales or market share for Tesco, according to latest figures from Kantar Worldpanel. | And there is "no sign yet of recovery" in sales or market share for Tesco, according to latest figures from Kantar Worldpanel. |
| In the 12 weeks to 14 September, Tesco sales fell 4.5% from a year earlier and its market share remained at 28.8%, the Kantar report said. | In the 12 weeks to 14 September, Tesco sales fell 4.5% from a year earlier and its market share remained at 28.8%, the Kantar report said. |
| The Kantar report also said annual growth in the UK grocery market over the 12 weeks was at a record low of 0.3%. | The Kantar report also said annual growth in the UK grocery market over the 12 weeks was at a record low of 0.3%. |
| Asda was the only one of the "big four" - Tesco, Asda, Sainsbury's and Morrisons - to increase its market share, now at 17.4% and sales were up 0.8% on the same period last year. | Asda was the only one of the "big four" - Tesco, Asda, Sainsbury's and Morrisons - to increase its market share, now at 17.4% and sales were up 0.8% on the same period last year. |
| The report confirmed that discount and premium supermarkets were still winning market share from bigger rivals. | The report confirmed that discount and premium supermarkets were still winning market share from bigger rivals. |
| "Aldi has continued its run of double-digit growth, which now stretches back to February 2011, by recording a sales increase of 29.1% compared with last year," said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel. | "Aldi has continued its run of double-digit growth, which now stretches back to February 2011, by recording a sales increase of 29.1% compared with last year," said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel. |
| "Similarly, Lidl has increased sales by 17.7%, showing that shoppers still have a strong appetite for the discount stores," he said. | "Similarly, Lidl has increased sales by 17.7%, showing that shoppers still have a strong appetite for the discount stores," he said. |
| Waitrose recorded a 4.5% rise in sales, which boosted its market share to 5.1%. | Waitrose recorded a 4.5% rise in sales, which boosted its market share to 5.1%. |