Tesco saw a “big price drop” yesterday after £2bn was wiped off the value of Britain’s biggest retailer Tesco yesterday. This was due to an accounting error that overestimated profits by £250m in the first six months of the year.
Shares in Tesco closed at 11.6% lower at 230p and ratings agency Fitch put the supermarket on negative watch. This is Tesco’s biggest share fall in 11 years.
To rescue Tesco, Alan Stewart, the ex-M&S finance chief, has joined the supermarket today in the same role – two months earlier than planned.
According to BBC business editor Kamal Ahmed, Tesco chief executive Dave Lewis appealed to M&S boss Marc Bolland to allow Stewart to leave early.
A spokesman for M&S said: “It was a request from Dave to Marc… We felt it was the right thing to do.”
The news comes after Tesco’s chief executive suspended four senior executives including UK MD Chris Bush. Lewis joined Tesco on 1 September, a month earlier than originally planned.