Poundland CEO to be replaced by ex Dixons FD O'Byrne

Having mooted his intentions to the board last year, McCarthy confirmed he will retire at the age of 60, after 10 years in the job, on 1 July.

Analysts at Shore Capital said the news surprised them, describing McCarthy as "hugely likeable, successful, experienced and charismatic"

Irishman O'Byrne, who has held a divisional CEO role at B&Q and is well known to the City, will join as CEO designate on 4 April as McCarthy oversees the completion of the conversion of the acquired 99p Stores business.

Chairman Darren Shapland praised McCarthy's guiding of the business from a small private operation in 2006 to the 900-stores, £1bn-plus revenue business today.

He added: "I am delighted that Jim is succeeded by an executive of Kevin's calibre. Kevin's retail experience, in both the UK and many international markets, together with his clear leadership skills, make him the outstanding candidate to lead the business as it continues to grow as a public company."

For his part, O'Byrne said: "I am very excited about joining Poundland, a business with a strong brand and great potential. Jim and his team have built a very good business. I look forward to working with the talented and experienced management team to deliver its ambitious plans."

Broker Peel Hunt noted that "there may be some concern that the well-regarded FD, Nick Hateley, will be miffed by being passed over, but we understand that by choice he wasn't part of the process", adding that they continue to be "big believers in the story".

Investors seemed relatively impressed, with shares in Poundland up 0.9% to 182.9p just before 0900 GMT on Wednesday.