Tesco CEO Sir Terry Leahy to retire in March 2011

 The CEO of UK grocery retailer Tesco, Sir Terry Leahy, has decided to retire in March 2011 after 14 years in the role. The retailer’s board has moved to implement its long-term succession plan, with International Director Philip Clarke to take over.

Chairman David Reid 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.”

“I am delighted Phil Clarke has accepted the role of CEO from March 2011. I have worked with Phil at Tesco for many years and I am confident he has all the necessary talent, energy and experience to take the group forward. He will be supported by an outstanding team of senior executives who together represent one of the strongest leadership teams in the world of retailing,” Leahy said.

Clarke joined Tesco in 1974 as a part-time assistant while still at school in Liverpool and joined the company’s management training scheme after graduating from an economics degree at Liverpool University. He joined the board in 1998 and is currently responsible for international operations and group IT.

Additionally Tim Mason, President and CEO of Fresh & Easy in the USA, will be given the responsibility for branding, the company’s values and climate change and will become deputy CEO of Tesco. He will remain in the US. David Potts will become the first CEO of its Asia business. He is currently Retail and Logistics Director in the UK as well as having responsibility for the Republic of Ireland. Richard Brasher, currently Commercial Director, will assume the newly created role of CEO for the UK business and take responsibility for the Republic of Ireland.

Andrew Higginson will continue as CEO Retail Services, comprising Tesco Bank, Tesco Telecoms, Tesco’s internet business and Dunnhumby. Laurie McIlwee will continue as Finance Director and Lucy Neville-Rolfe will continue as corporate and Legal Affairs Director. Trevor Masters will continue as CEO Central Europe and Turkey. Gordon Fryett will head up property across the group and a new commercial role will be created.