Tesco taps new director team to help 'rebuild' consumer trust

UK's largest retailer Tesco's has appointed two new non-executive directors to help restore its customer trust in the company, after news broke that the retailer was under investigation by the Financial Conduct Authority for an overestimation of 250 million pounds for its first-year profits.

To help regain lost ground Tesco's has tapped two independent consumers experts. Richard Cousins and Mikael Ohlosson are set to join the company board of Tesco on November 1 as non-executive Directors, stated Tesco's in a statement sent out on Monday.

Tesco's appoints non-executive duo to help regain customer faith

Cousins has been the Group chief executive officer of catering group Compass since 2006 and held non-executive director positions at Reckitt Benckiser Group, HBOS and Bank of Scotland in the past. He is said to bring “valuable UK and international corporate experience to the board.”

Ohlosson was CEO and President of the Ikea Group until September 2013, and in the past has held non-executive director roles at Volvo Car Corporation, Ikano and Lindengruppen. Tesco's adds that he will bring “valuable retail and international experience to the board.”

Tesco's chairman, Sir Richard Broadbent currently under fire after the company revealed it had overstated its prediction for its first half-profits by 250 million pounds two week ago. Sir Broadbent initially took on Dave Lewis as CEO to help overhaul the company, but three weeks into his new position the profit scandal was brought to light.

Last Friday saw Tesco's struggling financial issues bring brought to light once more after it emerged that Tesco's owned a new 31 million pound Gulfstream corporate jet, a purchased made by ousted CEO Clarke, which brought up a series of questions regarding the company's internal leading.

The duo of non-executive directors will help ensure such financial issues do not occur whilst Tesco's sales and profits are in the decline.Analysts claim that the addition of directors with a history of working in retail would have most likely been aware of potential overestimation of commercial revenues.

“I am delighted to welcome Mikael and Richard to the Board and know that their broad skills and experience will be a real asset to the Company in the coming years,” said Sir Broadbent. “Mikael and Richard have been updated on and are wholly supportive of the steps being taken by the new management team to rebuild trust in Tesco and to focus all the resources of the business to deliver value to our customers.”

Photos: Richard Cousins and Mikael Ohlosson