The chief executive of budget retailer Poundland is to retire later this year.

Jim McCarthy, 60, will be succeeded by experied retail director Kevin O'Byrne in July after a decade in the top job.

Mr McCarthy will remain available to the board until his retirement at the AGM in September.

In a statement announced to the stock exchange today, the Willenhall-based company said Poundland had grown from 146 stores with sales of £310 million to a business with more than 900 outlets in the UK, Ireland and Spain under his leadership.

During this period, the business has added an additional £1 billion of sales and now serves more than seven million customers a week.

Mr McCarthy said: "Poundland is a strong business, which I am privileged to have had the opportunity to lead through a period of significant growth and change.

"After over 40 years in retail, including ten years leading Poundland, I will leave the business in the hands of a very experienced leadership team who I know will give Kevin their full support."

Mr O'Byrne is an experienced international retailer who has been a director of both Dixons and B&Q owner Kingfisher where he was most recently chief executive of the DIY chain B&Q for the UK and Ireland.

He is also the senior independent director of commercial property group Land Securities Group.

Poundland's chairman Darren Shapland 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."