Mr Duddy, 57, has been at Home Retail Group for 15 years, seven of those as chief executive.
He said on Wednesday morning that he would step down by the company’s annual general meeting on July 2 next year. Home Retail Group has not appointed a successor, and says chairman John Coombe will identify both internal and external candidates.
“It has been a great privilege to lead this group for 15 years, including the last seven as the chief executive of Home Retail Group,” Mr Duddy said. “We have achieved a great deal in that time and the positive momentum of the business is now such that I feel the time is right to move onto the next stage in my career.”
He added: “We have built a great management team and I look forward to continue working with them during the coming year to progress the exciting strategies that we have established for both businesses.”
Mr Duddy’s departure comes as Argos and Homebase emerge from five years of sales declines by revamping their operations. Argos has been squeezed by the rise of online retailers such as Amazon, while a shrinking DIY market hit Homebase last year.
The businesses posted their first rises in like-for-like sales in half a decade this year, as Mr Duddy unveiled a turnaround plan for Argos based around click-and-collect online orders.
Poor performances in recent years have seen Home Retail miss targets, leading to Mr Duddy’s bonuses repeatedly cut.
Mr Coombe heaped praise upon Mr Duddy as the chief executive’s resignation was announced: “Terry is one of the longest serving chief executives in the industry and he has provided strong leadership during one of the toughest periods of economic uncertainty faced by the business,” he said.
“As a result of the group’s exceptional cash generation in recent years, we have the financial strength to support both Argos and Homebase in delivering their strategic plans. The group has a strong management team in place and we are delighted that Terry will continue to lead the group as we manage the orderly appointment of his successor.”
Mr Duddy was chief executive of Argos when GUS, Home Retail’s predecessor, acquired the retailer in 1998. He then went on to be made chief executive of Home Retail in 2006.