Tesco's Property Team Begins Mass Exodus

The UK's leading construction magazine, Building, reported at the end of last week that supermarket Tesco is facing what it calls "the mass departure of its property team", with Tesco's development director, programme director, company architect, procurement director, design director, head of engineering and head of small projects all leaving the company.

Building says:

Tony Vasishta, development director at Tesco, confirmed that he handed in his notice four weeks ago, at the same time as Mark Cammies, the programme director. Vasishta is in talks with McArthur Glen, a retail developer, but said he had not yet decided to move to the firm. Steve Douglas, Tesco’s architect, is to join retailer John Lewis. Cammies’ future was unclear as Building went to press...

Others who have left, or handed in their notice, are Bob Tragheim, the procurement director, Helen Dodd, the design director, Pat Jubb, the head of engineering, and Brendan Hastings, head of small projects. It is understood that a number of the company’s project managers are also going.

The group’s ambitious development programme has, paradoxically, left some contractors and consultants disgruntled because they say they are continually fighting for better margins.

The chief executive of one of Tesco’s main contractors said the supply chain was being “screwed down as far as possible to save money” and that some of his staff now refused to work on Tesco’s projects because of the group’s increasingly cut-throat and aggressive methods.

Tesco will spend £1.8bn in construction in 2006, opening 140 new stores. It opened 2 million ft2 of store space last year and will add 2.2 million ft2 this year. [full article]