CEO Sir Terry Leahy to leave Tesco

Sir Terry Leahy

Large British supermarket Tesco has announced that its CEO Sir Terry Leahy will retire next year after 14 years in the top spot, at the age of 55. Philip Clarke will move up to take his place as CEO.

Sir Terry took over the supermarket chain in 1997, and, under his guidance, Tesco has transformed from the UK's number two supermarket into an international powerhouse, challenging the likes of Carrefour and Wal-Mart in Asia, Europe and now the US.

Sir Terry also leaves behind a strong legacy as marketing director, where he developed the Tesco Clubcard and the Tesco Value lines - both of which have been key to the success of the supermarket chain in the UK.

"When I became CEO 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," Sir Terry said.

Terry has made an unrivalled contribution over a prolonged period. He is undoubtedly one of the leading businessmen of his generation. He has put in place a strategy which can secure the progress of Tesco for years to come," added chairman David Reid.

Sir Terry will be replaced with Philip Clarke, who currently holds the the group's international operations in Asia and Europe as well as group IT. He himself is a bit of success story, as he joined the company in 1974 on a graduate scheme, and in the corresponding 36 years has worked his way up as a store manager, buyer, marketeer and as an international executive.

In a string of other top office changes, Tim Mason, president and CEO of the US Fresh & Easy business, will also become deputy chief executive, though he will still be based in the US.

David Potts will become the first CEO of the Asia business, moving up from retail and logistics director in the UK.

Richard Brasher, currently Commercial Director, will be the CEO of the UK business and take responsibility for the Republic of Ireland.

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