Tesco boss Sir Terry Leahy is to step down as chief executive after a 14-year period at the top of the supermarket giant.
He will be replaced by Philip Clarke, the company's international director, after his retirement next year.
Leahy’s “unrivalled contribution” to the business has included becoming market leader ahead of the likes of Asda and Sainsbury’s and breaking £1 billion profit mark in 2001.
Under his stewardship the company has posted record earnings every year since and in 2010 it made a profit of £3.4 billion.
Tesco chairman David Reid dubbed Leahy "undoubtedly one of the leading businessmen of his generation".
Leahy, who will be 55 on retiring next March, said: “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.
“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.
“There is no better job than leading Tesco and after retirement I will concentrate mainly on private investment. I will, of course, keep a large shareholding in Tesco and remain its biggest supporter.”
Clarke, like Leahy, grew up in Liverpool and has worked for Tesco in a number of roles including store manager, a buyer, and a marketeer before running the international operations. He is widely credited with driving Tesco's expansion in Europe and Asia.
He said: "I am very excited by the opportunity to lead such a fantastic team of executives, many of whom I've worked with for years. Together we will build a global business which focuses on the customer and fully respects our people, our communities, our supply chain and our shareholders.”
