Rob Scott has been named the new Wesfarmers managing director to succeed Richard Goyder, who will step down from the role towards the end of this year.
Mr Scott, who is currently head of Wesfarmers' industrials division, will become deputy chief executive immediately before joining the board as managing director after the company's annual meeting in November.
The 47-year-old has been touted as the likely replacement for Mr Goyder for some months. This talk firmed after Bunning boss John Gilliam stepped aside in December amid speculation he was not one of the candidates for the top job.
Chairman Michael Chaney said Mr Scott, a former Olympic rower, had shown himself to be an "outstanding executive and had demonstrated his leadership and commercial capability". His appointment continued Wesfarmers' "unbroken tradition of appointing its chief executives from within the group".
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"Rob has a proven capability to deliver improved business performance and to lead change through building great teams around him," Mr Chaney said.
"Importantly he is deeply grounded in the Wesfarmers culture and disciplined focus on sustainable shareholder returns."
Mr Chaney said Mr Goyder had been an "extraordinary" leader. During his tenure, which included the acquisition of the Coles group in 2007, Wesfarmers' value has increased from $15 billion to about $50 billion.
Mr Goyder, who has led the conglomerate for more than 12 years, said his decision to retire hadn't been easy.
"I continue to enjoy the challenges of leading this outstanding and diverse company and appreciate the opportunities it has given me," Mr Goyder said in a statement to the ASX on Tuesday.
"I look forward to working with Rob on a seamless transition in the months ahead."
The eighth managing director and chief executive in Wesfarmers' 103-year history, Mr Scott joined Wesfarmers in 1993 before a stint in investment banking in Australia and Asia.
He rejoined the Perth-based conglomerate in 2004 in its business development team and following several leadership roles was made managing director of Wesfarmers' new industrials division in 2015.
More to come