Other than founder Richard Tompkins, perhaps nobody is more associated with Argos than Terry Duddy, chief executive of parent Home Retail, who has revealed he will step down by next July.

Other than founder Richard Tompkins, perhaps nobody is more associated with Argos than Terry Duddy, chief executive of parent Home Retail, who has revealed he will step down by next July.

Duddy has led Argos since 1989, when it was part of GUS, and used it as the foundation stone of Home Retail.

He acquired home enhancement retailer Homebase along the way and added complementary brands such as Homebase to build a home and general merchandise giant that was separately listed in 2006.

There have been ups and downs along the way and, during the recession and its aftermath it has sometimes looked as if it would be down all the way for Home Retail and Duddy as some questioned whether the business – Argos especially – had a future.

Increased competition from online retailers and a shopper demographic that was hard hit by the downturn prompted much speculation about whether the retailer’s day in the sun was over. In particular, Argos’s vast estate of 737 stores was thought by some to be out of kilter with the ecommerce era.

But Duddy has steered the business through tough conditions and although it is not quite moored in harbour, its prospects – again, Argos’s especially – look brighter.

He faced criticism at times for not acting swiftly enough to remodel the business but he can justifiably say, as he did in his departure statement, that “positive momentum” is evident.

Argos moved early into multichannel. It probably took its foot off the pedal a little a few years back, but the arrival of John Walden as managing director brought new ideas.

Internet sales penetration stood at 42% of the Argos total when Home Retail last reported in June, and like-for-likes rose 1.9%. Walden’s strategy to make Argos a “digital” leader, such as the introduction of digital catalogues and website improvements should bring further progress.

Duddy was always a champion of the store, which he sees as a key weapon in Argos’s multichannel armoury.

Whether his successor will agree remains to be seen but, in-store too, changes are afoot to adapt to the new technological age, such as web browsers rather than catalogues. The fact that Argos has 275 lease renewals and break clauses coming up over the next five years offers room to modify the estate.

The question now is who will succeed Duddy, and Walden must be the front-runner. While Duddy has led at group level, it’s Walden’s action which is now making a difference at Argos.

Assuming Walden, or someone with a similar background, takes the Home Retail top job it will represent another generational passing of the retail baton.

Duddy, with his years of experience including at retailers such as Dixons, is one of the industry’s most seasoned leaders but was always able to recognise that the world does not stand still. His successor is not likely to be in exactly the same mould, and that’s quite right.

Given the extent to which Argos and Homebase have been through the mill, it’s a rebuke to Duddy’s critics not only that they are both still here but – as he always relishes pointing out – Home Retail has a strong cash position. At the time of May’s prelims, net cash stood at £396m.

Duddy’s departure next year will no doubt spark renewed thinking about the shape and direction of travel at Home Retail but – unlike some of his defunct rivals – Duddy leaves a business that a successor can then steer through a new phase.

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