Tesco high-flyer defects to DSG

Speculation of a talent crisis at the UK’s number one supermarket chain Tesco has increased as another high-flyer confirms his departure. The firm’s operating director John Browett is defecting to become chief executive of electrical retail giant DSG International, pencilled in to take over the £660,000 job in September after John Clare, DSG veteran of 22 years, retires.

“So many companies are now looking for senior talent that combines both a good understanding of online space, with an ability to work on the international stage. John Browett will bring these skills to DSG in spades,” said Norrie Johnson, managing director of headhunter agency, Executives Online.

DSG International, owner of Currys, Dixons and PC World, has found itself unquestionable pedigree in Browett, who is widely regarded as the architect of the success of Tesco.com. Last year the online service reported a 28 per cent rise in profit equating to £83m on sales of £1.1bn, making Tesco the number one online retailer in the UK.

Browett, 43, is the latest in a line of senior talent walking out of Tesco’s aisles. The departure of two senior directors – Scott Wheway and Ken McMeikan – in late 2004 first sparked reports of a brain drain. Wheway joined Boots, while McMeikan moved to J Sainsbury. Others have followed, including Darren Blackhurst and Stuart Machin, who both left to join Asda, and Andy Coleman, who recently joined J Sainsbury.

The defections have made headlines but John Churchill, Tesco’s media director, is adamant that reports of a brain drain are unfounded. “We work hard at talent planning but sometimes people will leave for other things, that is just the nature of business. Even though we have lost some senior staff recently we still have a very strong team with a great feeling of loyalty.”

DSG, meanwhile, could face a backlash from some of its senior staff after they were overlooked for the position. PC World finance director Kevin O’Byrne, and Per Bjorgas who runs the electrical division, were both considered to be front-runners for the post and will have to be consoled after Browett’s appointment.

Browett will serve out the remainder of his term on gardening leave. But Churchill is quick to deny that he will follow a similar fate to Machin, who spent his last days working at a depot two-and-a-half hours drive from his home.