By Saabira Chaudhuri 

TescoPLC has named John Allan as its new chairman, replacing Richard Broadbent.

In an announcement after U.K. markets closed Tuesday, the world's second-largest retailer by revenue said Mr. Allan's appointment would be effective March 1.

Mr. Allan is the former chairman of electronics retailer Dixons, which recently merged with Carphone Warehouse to become Dixons Carphone PLC. He became deputy chairman of the combined company, though Dixons Carphone said Tuesday that he would step down immediately. Mr. Broadbent, a former deputy chairman of Barclays PLC, has been Tesco chairman since 2011.

Tesco has been on the hunt for a new chairman since October, when it revealed that the accounting practices that led to a GBP263 million ($404 million) overstatement of its first-half profit had also occurred in prior periods. It named Dave Lewis as its new chief executive in September, replacing Philip Clarke.

Many in the investment community had expected retail-industry veteran Archie Norman to be named chairman. Mr. Norman was chief executive and chairman of the U.K.'s Asda supermarket chain before Wal-Mart Stores Inc., the No. 1 global retailer, bought it in 1999.

Mr. Norman is now chairman of the U.K. television company ITV PLC. An ITV spokesman didn't immediately respond to a request for comment.

"There may be some disappointment after recent speculation linked Archie Norman, of Asda turnaround fame, to the role of chairman of Tesco," said John Kershaw, an analyst at Exane BNP Paribas. Still, he noted that Mr. Allan's experience at Dixons along with a deep knowledge of global logistics "should provide valuable insights to a Tesco business undergoing marked change."

Mr. Allan will join Tesco at a turbulent time for the company. The U.K. supermarket giant's governance has been under intense scrutiny after it called in outside auditors to investigate the misstatement of its accounts.

"Following a deep and thorough process run by a committee of independent nonexecutive directors, the board unanimously agreed that John Allan was the right candidate to chair Tesco at this important time," said Tesco's senior independent director, Patrick Cescau, in a statement.

Tesco has struggled through a tough period lately, with the accounting scandal adding to woes being experienced by the whole British supermarket sector in the face of vicious price wars that have squeezed profits. Tesco, like its peers, has been battling competition from both higher-end grocery stores and aggressive discounters.

Tesco is being investigated by U.K. retail regulator the Groceries Code Adjudicator, which earlier this month said it suspects that the company breached the industry's code of conduct. The retailer also is the subject of an investigation by the U.K. Serious Fraud Office into its accounting, which could result in criminal charges for individuals, or the company as a whole, as well as by the Financial Reporting Council. Tesco has said it is cooperating fully with all of the inquiries.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

Access Investor Kit for Barclays Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0031348658

Access Investor Kit for ITV Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0033986497

Access Investor Kit for Barclays Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US06738E2046

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Barclays (NYSE:BCS)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Barclays Charts.
Barclays (NYSE:BCS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Barclays Charts.