Sir Terry to quit as Tesco chief

Sir Terry is to be succeeded in the top job by international and IT director Philip Clarke, who has worked at Tesco throughout his career, having first started as a part-time assistant in 1974.

The chain's outgoing boss, who will be 55 when he retires in March 2011, said he joined the group with a plan to make Tesco number one in the UK and to build long-term growth by expanding into non-food and internationally.

He added: "I feel my work is almost complete."

Sir Terry said he would concentrate on "private investment" after he left Tesco, but would retain a large shareholding in the firm.

He said: "When I became chief executive 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."

But shares in the supermarket dropped nearly 2 per cent after news of Sir Terry's departure.

The appointment of Mr Clarke, 50, comes as part of a long-term succession plan put in place by the firm, with a raft of other board changes also announced today.

Tesco named Tim Mason, head of its Fresh & Easy business in the US, as deputy chief executive, based in America.

Commercial director Richard Brasher will take on the newly-created role of chief executive of the UK business, with responsibility also for Irish operations.

And Tesco has hired its first chief executive of Asia, appointing UK retail and logistics director David Potts to the role.