Dave Lewis, the former Tesco PLC (LSE:TSCO) boss, has joined Morrisons’ private equity owner as an advisor, in a bid for the supermarket to regain its lost market share.
Clayton, Dubilier & Rice (CD&R) has hired the veteran retail boss to improve its retail and consumer offering, with Lewis commanding a strong reputation following his turnaround job at Tesco.
“I believe his knowledge and experience, built up over three decades, will be of great value to CD&R funds as we consider new investments and continue to build stronger, more sustainable businesses across Europe,” said CD&R co-president Dave Novak.
The New York-based firm purchased Wm Morrison Supermarkets for £10 billion in 2021, but faced difficulties in 2023 after the grocer lost its spot as the UK’s fourth-biggest supermarket to Aldi.
Both German discounters, Lidl and Aldi, have been eating up market share since the start of the cost-of-living crisis as the other more established competitors struggle to match their prices.
Dave Lewis has played down the impact he will have on the supermarket’s day-to-day operations and instead will focus on “what investments might be added to the portfolio”.
"Few, to us, are better placed to add value to deal activities in the consumer arena than Sir Dave," analysts at Shore Capital said.
"Indeed, time will tell as to any involvement by the new advisor with troubled Morrisons... we sense it may be a missed opportunity not to seek his wise counsel."
Lewis has been referred to as “the bloke who saved Tesco” after his tenure between 2014 and 2020 saw him bring back profitability, cut costs, slash thousands of jobs and sell all its Korean and Thai stores.
He also oversaw Tesco’s 2017 purchase of the UK’s largest wholesaler, Booker.
Before this, he worked at Unilever, where he picked up the nickname ‘Drastic Dave’, due to his ruthless cost-cutting techniques.
He will join fellow former Tesco boss Terry Leahy and Boeing chief Jim McNerney as a corporate advisor at CD&R.