SHARES in supermarket chain Tesco slipped by almost 2% – after the news that chief executive Sir Terry Leahy is to retire after 14 years at the helm.
Sir Terry plans to focus on “private investment” after leaving the company – but will retain a large shareholding in the firm.
Tesco shares fell by 9.7p to 397.4p as investors digested the news.
He will be succeeded by Tesco’s 50-year-old international and IT director Philip Clarke.
Sir Terry said: “When I became chief executive, I had a plan to build Tesco around its customers, to make it number one in the UK and to find new long-term growth in non-food, in services and in international expansion.
“I wanted to develop a purpose and values that could sustain Tesco through its challenges and encourage and grow future leaders.
“It has taken 14 years but that strategy has become a firm reality now and so I feel my work is almost complete.”
The appointment of Mr Clarke comes as part of a long-term succession plan put in place by the firm.
Tim Mason, head of Tesco’s Fresh & Easy business in the US, becomes deputy chief executive, based in America.
Commercial director Richard Brasher takes on the new role of chief executive for the UK and Irish businesses while UK retail and logistics director David Potts becomes chief executive of Asia.
Sir Terry said he would be looking at investing in “business generally” when he retires, but refused to be drawn further on plans for life after Tesco.
He has been with the group since 1979 and held marketing and commercial posts before taking over as chief executive in 1997.
Sir Terry said he was leaving the group in good hands, adding: “We’re coming out of a difficult recession, which I’ve steered the business through. By March, 2011, we’ll be into a strong recovery and that’s a good time for the new team to take over.”
