Sir Terry Leahy returns to Liverpool for conference

Apr 29 2008 by Alex Turner, Liverpool Daily Post

TESCO chief executive Sir Terry Leahy yesterday returned to his home city to talk about how the retailer’s international success is based on local knowledge in its markets.

He spoke to an audience of delegates at the British Chambers of Commerce annual convention, which was being held outside London for the first time, at Liverpool’s BT Convention Centre.

Sir Terry, who has been in charge of the retailer since 1997, addressed the convention on the theme of moving from local creativity to global competitiveness.

Tesco, which has its roots in a market stall in the east end of London set up by Jack Cohen in 1919, has increasingly shifted its focus overseas in recent years, a move that is paying dividends.

Sir Terry said: “Our international business is now making as much money as the group did 10 years ago – we have created another Tesco.

“We now have more space outside the UK than within it.”

Its main international presence is in Eastern Europe and Asia, while last November the retailer moved into the American market with its Fresh & Easy stores.

It opened 60 stores but four weeks ago announced a three-month hiatus in opening new sites as it looked to iron out teething problems.

But despite this, and other high-profile problems in Thailand regarding the com-pany’s use of libel suits against commentators critical of Tesco’s methods, Sir Terry was bullish about his company’s operations.

“Tesco is a particularly good example of a business using local creativity to create global competitiveness,” he said.

“The key principle for Tesco is to listen to customers. We don’t know it all and we never will.

“Consumers’ demands and tastes change much quicker than businesses change. We think change is part of our DNA.

“As we change we ask ourselves, ‘does this work locally?’ Our offer is always rooted in what the customer wants and the people who know best are those closest to the customer, which is why we place a premium on local talent.”

Tesco has around 160,000 employees in its international operation, of which only about 200 are expatriates.

And although Sir Terry’s attentions are mainly focused on international growth – he has pegged his long-term bonus scheme, worth around £11.5m, to the success of the US expansion – the former St Edward’s pupil was proud to be in Liverpool addressing the conference.

“I’m particularly pleased the British Chambers of Commerce conference has come to my home city,” he said.

“Liverpool is a city with a long mercantile tradition. It also has a strong tradition of local creativity.

“Every business has to start somewhere. Jack Cohen took £4 on his first day, making a profit of £1. That’s a better margin than we achieve now!”

Sir Terry was clear on what businesses, whatever its size, needed to do to be successful.

“Businesses are the masters of their own destiny,” he said. “It means never being complacent but asking what more can I do to help the customer.

“Aim high right from the outset, pit yourself against the best in the world, but never lose sight of why you started the business.”

alexturner