Tesco has announced today that Sir Terry Leahy has decided to retire in March 2011 after 14 years as ceo.
The Tesco board has moved to implement its long-term succession plan, which sees Philip Clarke become the new ceo, along with a number of other changes to the board.

Sir Terry 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 long-term growth in non-food, in services and in international expansion. I wanted to develop a purpose and values that could sustain Tesco throughout 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."

He added: "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."

Sir Terry will keep a large shareholding in Tesco and says he will remain its "biggest supporter", but intends to concentrate mainly on private investment after retirement.

Tesco 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."

Mr Clarke has worked at Tesco throughout his career, and joined the board in 1998. He currently has responsibility for the group's growing international operations in Asia and Europe as well as group IT.

He said: "I am honoured and delighted to succeed Terry who has taught me so much. 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."

Tim Mason will become deputy ceo of Tesco plc. He is currently president and ceo of the group's Fresh & Easy business in the USA, and will be given the additional group responsibility for branding, values and climate change. He will continue to be based in the US.

Richard Brasher, currently commercial director, will take on the newly-created role of ceo of the UK business, also taking responsibility for the Republic of Ireland.

Tesco recorded a 12.3% growth in group trading profit to £3,412m in its preliminary results statement for 2009/2010, published in April.