The Tesco shareholders’ meeting offered a chance for protestors to ambush management, says Beth Brooks
There were rumours of a mass demonstration, but only a handful of protestors from Friends of the Earth and Action Aid gathered on the steps of the Queen Elizabeth II conference centre in London for Tesco’s AGM last week.
Flanked by an inflatable doll named Corporate Muscle, they politely waved banners and handed out leaflets as Tesco shareholders streamed past.
Inside, Tesco’s chairman, David Reid suggested the protests were entirely reasonable. He said: “A large and successful business like ours touches the lives of so many people, it is inevitable that we will be faced with increasing questioning about our role and impact on society.”
Unfortunately it didn’t wash with those shareholders who had the aim of ambushing the management.
The agm began well enough as chief executive Sir Terry Leahy recapped on a record-breaking year in which the retail giant broke the £2bn profits barrier. He pointed out that Tesco now holds a 13% share of the total retail market and was expected to grow further this year.
He highlighted trading figures for the 12 weeks to May 21, which showed an 8.8% climb in like-for-like sales and an 11.3% increase in total UK sales. He also revealed further expansion this year, both in the UK and abroad, saying that Tesco’s new store opening programme was in good shape for the year ahead, with more than five million sq ft planned - more outside the UK than within.
But then things descended into open hostility as Reid found himself fending off angry ‘shareholders’ during questions and answers, ranting about issues ranging from the price of broccoli and bread in Tesco stores to the retailer’s treatment of suppliers.
He developed a steady sheen of sweat as the session dragged on, fuelled by a vocal minority. One shareholder even brandished Tesco’s growth as “creeping megalomania”.
“I’m concerned about the rise and rise of Tesco. Everywhere you go you see an Express or a Metro and it’s a plague of locusts actually,” he said.
It was all too much for those who were there to hear about the company’s financial performance, who resorted to openly heckling and jeering the rebels in their midst.
Reid found himself caught in the middle of it all, but did his best to defend the retailer.
“The idea of Tesco cutting out the c-sector is a total myth,” he insisted, adding that customers would simply stop shopping at Tesco if they thought it was too dominant.
Soon after, shareholders were ready to leave, by which time the protestors outside had dispersed. But you could argue it was the ones inside the QEII Centre who had more impact.
There were rumours of a mass demonstration, but only a handful of protestors from Friends of the Earth and Action Aid gathered on the steps of the Queen Elizabeth II conference centre in London for Tesco’s AGM last week.
Flanked by an inflatable doll named Corporate Muscle, they politely waved banners and handed out leaflets as Tesco shareholders streamed past.
Inside, Tesco’s chairman, David Reid suggested the protests were entirely reasonable. He said: “A large and successful business like ours touches the lives of so many people, it is inevitable that we will be faced with increasing questioning about our role and impact on society.”
Unfortunately it didn’t wash with those shareholders who had the aim of ambushing the management.
The agm began well enough as chief executive Sir Terry Leahy recapped on a record-breaking year in which the retail giant broke the £2bn profits barrier. He pointed out that Tesco now holds a 13% share of the total retail market and was expected to grow further this year.
He highlighted trading figures for the 12 weeks to May 21, which showed an 8.8% climb in like-for-like sales and an 11.3% increase in total UK sales. He also revealed further expansion this year, both in the UK and abroad, saying that Tesco’s new store opening programme was in good shape for the year ahead, with more than five million sq ft planned - more outside the UK than within.
But then things descended into open hostility as Reid found himself fending off angry ‘shareholders’ during questions and answers, ranting about issues ranging from the price of broccoli and bread in Tesco stores to the retailer’s treatment of suppliers.
He developed a steady sheen of sweat as the session dragged on, fuelled by a vocal minority. One shareholder even brandished Tesco’s growth as “creeping megalomania”.
“I’m concerned about the rise and rise of Tesco. Everywhere you go you see an Express or a Metro and it’s a plague of locusts actually,” he said.
It was all too much for those who were there to hear about the company’s financial performance, who resorted to openly heckling and jeering the rebels in their midst.
Reid found himself caught in the middle of it all, but did his best to defend the retailer.
“The idea of Tesco cutting out the c-sector is a total myth,” he insisted, adding that customers would simply stop shopping at Tesco if they thought it was too dominant.
Soon after, shareholders were ready to leave, by which time the protestors outside had dispersed. But you could argue it was the ones inside the QEII Centre who had more impact.
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