'Rising star' tipped to take over number one job at Asda

Mr Clarke, 46, currently Asda's chief operating officer, is seen as a rising star within the Leeds-based supermarket chain.

Last night bookmaker Ladbrokes had Mr Clarke as favourite to win the top job at odds of 11/10.

Mr Clarke was previously Asda's retail director, but was promoted to his current role in February 2009 – a decision that prompted speculation over the succession strategy.

Finance director Judith McKenna is the bookies' second favourite at odds of 7/4. Ms McKenna is also highly respected and she has previously stepped in to take Mr Bond's place at high profile events.

Asda's US parent Wal-Mart is known to favour internal candidates, although yesterday Asda said it is looking both internally and externally.

In a surprise announcement yesterday, Asda said that Mr Bond was stepping down in order to take on a three day a week role as the chain's non-executive chairman, a new role that has been created for him.

Asda said that the decision was entirely Mr Bond's and that following the completion of his three phase five-year business plan, he felt it was time to pass the baton on to someone else.

Asda hopes to appoint a new chief executive within "the next couple of weeks".

Mr Bond said it was unlikely he would take on another big chief executive role, saying that he would like to spend his two free days a week doing something more "entrepreneurial" or working in the "public policy arena".

Analysts believe Mr Bond, who lives in North Yorkshire, has been hindered to an extent by his refusal to leave Yorkshire or pull his children out of school in order to take up a bigger role within Wal-Mart. Asda has been on the look-out for a new chief executive for the past month after Mr Bond decided earlier this year that he wanted to pass on the day-to-day running of the company to someone else.

Asda added that Mr Bond is committed to staying on at the group in his new role as non-executive chairman.

Asda itself has admitted that its performance over the past few months has fallen short of its high standards, but said this was in no way connected to Mr Bond's decision to relinquish control of the group.

The decision to announce the news this week was partly down to the fact that Mr Bond will be giving a presentation to analysts in Leeds on Thursday, outlining the group's future strategy.

Asda said Mr Bond felt it would be best to announce his decision before the meeting rather than giving the impression that he would be leading the group through these changes.

The group – the UK's second biggest grocery chain behind Tesco – said Mr Bond will remain as chief executive until a successor is appointed. He is keen to ensure a smooth handover period.

Mr Bond has led Asda for the past five years and has been with the company for 16 years.

His move marks the latest in a series of changes in the retail sector after the departure of Marc Bolland from Bradford-based Morrisons to join Marks & Spencer.

Mr Bolland will take on the top job at M&S on May 1, while his successor Dalton Philips has already started at Morrisons.

Mr Bond, 45, is relinquishing control after record results in 2009, with like-for-like sales up six per cent.

The firm claims to have beaten all its sales and profit targets, although the group's market share has slipped in recent months due to strong competition in the UK. Prior to becoming chief executive Mr Bond acted as chief operating officer and has also led its fast-growing George clothing range.

HOME RETAIL AT CENTRE OF STORE BID SPECULATION

Shares in Argos owner Home Retail Group rose five per cent last night amid speculation of a potential bid from Asda.

Home Retail, which also owns Homebase, jumped nearly 14p to 294.2p after it was identified as a possible target in Asda's expansion plans.

The supermarket, owned by US food giant Wal-Mart, is reportedly weighing a large acquisition as it looks to close the gap between rival Tesco and boost its share of the general merchandise market.

Asda is understood to have considered a number of other firms both on the high street and in out-of-town shopping parks, including Home Retail and budget clothing chain New Look. The firm said it would not comment on speculation.

Asda is understood to have received the green light from its US parent to go ahead with a takeover.

The grocer would dramatically increase its size if the takeover goes ahead and would therefore attract regulatory attention.

Asda has a total of 371 stores, 23 depots and 24 Asda Living outlets across the UK.

Home Retail has 744 Argos stores and 349 Homebase outlets.