TERRY LEAHY, the man who transformed Tesco from the second biggest grocery retailer in the UK to a major global player, has retired as chief executive of the company.
In a surprise move, Mr Leahy said he would step down in March 2011 at the age of 55 after 14 years as chief executive.
The well-regarded retail boss will be replaced by Tesco insider Philip Clarke.
The Liverpool-born Mr Leahy, whose father was from Co Sligo and his mother from Co Armagh, was seen as the leading retailer in Britain over the last 15 years.
Tesco’s expansion under his leadership was so all-pervading that the company was criticised for being too dominant and maintaining a “Tescopoly”.
The company is now the fourth biggest retailer in the world with 4,300 stores across 14 countries. It continues to grow, although recent ventures into the US market have been loss-making.
Despite a fall in sales last year, Tesco is understood to be highly profitable in Ireland, where it has stores in all but one county – Kilkenny.
Tesco’s shares fell on the announcement of Mr Leahy’s move, which was two or three years before most analysts had expected. Some questioned why Mr Leahy, who was knighted for his services to retail in 2002, was leaving when his biggest gamble – US chain Fresh & Easy – has yet to deliver.
Mr Leahy said his strategy of securing grocery market leadership in Britain and then expanding into higher-growth areas overseas, in non-food markets and in financial services would not change.
“I feel my work is almost complete,” he said. “We’re coming out of a difficult recession which I’ve steered the business through. By March 2011, we’ll be into a strong recovery, and that’s a good time for a new team to take over.”
He said he was confident Fresh Easy would be a success once its western US heartlands exited recession.
After his departure Mr Leahy said he would concentrate on private investments, not focused on retail, and declined to say whether he might take a political position if offered one.
In an interview with The Irish Timesin 2008, Mr Leahy, dismissed critics of the supermarket chain and said the retailer was pro-consumer.
“You’ve got to remember some people in society don’t want consumers to be in charge. They prefer consumers to be patronised. I much prefer a democracy where people actually have control over their own lives.”
(Additional reporting: Reuters)
