Tesco CEO Terry Leahy to step down next year

LONDON: Shares in Tesco, the world’s third-largest retailer, slipped Tuesday after it announced its CEO would step down amid the company’s expansion into the United States. Terry Leahy plans to step down next March at the age of 55 after 14 years leading the company’s transformation from industry follower to market leader. He will be replaced by Philip Clarke, 50, the company’s current head of operations in Asia and Europe.

Leahy said he was leaving the group in good hands at an appropriate time. “We’re coming out of a difficult recession, which I’ve steered the business through,” he said. “By March 2011, we’ll be into a strong recovery and that’s a good time for the new team to take over.” But the timing of his departure came as a surprise to the market, raising some questions over his decision to leave before the fledgling US business has fully bedded in. Tesco reported a trading loss for the 2009 financial year in the United States, as it opened new Fresh & Easy stores.