The man behind Tesco’s online success has been appointed as the next chief executive of DSG, the UK’s largest electricals retailer.
Currys and Dixons group DSG said this morning that John Browett would replace John Clare, whose retirement was announced last week.
Mr Browett, 43, is currently operations development director at Tesco and responsible for its “step change” efficiency savings programme.
He made his name as chief executive of Tesco.com, which is market leader in the online grocery sector.
“John’s involvement in creating Tesco’s online operations and more recently in driving improved customer experience and operational efficiencies will ensure that DSG international can continue to capitalise on our strengths for the benefit of our customers, employees and shareholders,” said John Collins, DSG chairman.
Last year, DSG turned its Dixons brand into a web-only operation and rebranded its high street stores as Currys.digital.
Shares in the company were up 2.5p at 167p following the announcement.
Nick Bubb, analyst at Pali International, said DSG had made a good choice.
“John Browett is widely regarded as one of the rising stars of the Tesco management team. His background in strategy, online development and international operations at Tesco gives him a lot of the skills that are needed to get a grip on the DSG portfolio,” Mr Bubb said.
Mr Clare will step down in September after 22 years at DSG, 13 as chief executive. DSG cautioned that a start date has not yet been finalised, and it is understood that Mr Browett is currently on gardening leave while the terms of his departure from Tesco are agreed.
Several senior DSG executives had been regarded as possible candidates for the top job at DSG, including its finance director Kevin O’Byrne.
“All in all, we think that this is a good appointment, that DSG were probably right to go for an outsider and that the news today should be well received by investors,” Mr Bubb added.
In his current role, Mr Browett is responsible for the design and improvement of Tesco’s stores, depots and back office functions.
DSG’s own operations were criticised after it admitted in March that a sophisticated fraud at a Paris warehouse would cost it £10m.
Mr Browett joined Tesco in 1998 as group strategy director. A graduate of Cambridge University, he has an MBA from the Wharton Business School at the University of Pennsylvania.
Graeme Wearden
Thursday June 7, 2007
Guardian Unlimited