Terry Leahy says hasta la vista after fourteen years at Tesco

Britain’s leading supermarket group, Tesco (LON:TSCO) confirmed this morning that after 14 years at the helm of the company, Terry Leahy will retire at CEO in March 2011.

During his tenure, Leahy has transformed Tesco from a leading supermarket group in Britain to the fourth largest retailer on the planet (based on revenues) behind Wal-Mart (NYSE:WMT), France’s Carrefour (EPA:CA) and Germany’s Metro AG (ETR:MEO).  Over this tenure, Leahy has had his fair share of critics, most notably from commentators who question the logic in the group’s overseas expansion and concerns over its dominant position in the UK market. However, overall, Leahy will likely be remembered as a very astute CEO who built a powerhouse in the retail sector. His successor, Philip Clarke, has very big shoes to fill.

“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,” David Reid, Chairman of Tesco’s stated this morning.

Clarke, aged 50, is a veteran Tesco man, having worked with the company for several decades and joined the board of directors in 1998.  He currently oversees Tesco’s international operations in Europe and Asia, perhaps signalling that Tesco believes its continued success will be dependent on its ability to keep taking market share in emerging markets.

Tesco also announced several other changes at the top, with Tim Mason, who currently manages the company’s Fresh & Easy business in the United States is now also in charge of the group’s branding, and will become Deputy CEO. David Potts will become the first CEO of our growing Asia business, while Richard Brasher , currently Commercial Director, will assume the newly-created role of CEO of the UK.
“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,” Sir Terry said this morning. “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.”