The supermarket chain said in a statement that Richard Brasher will step down, leaving the company within months, and that group chief executive Philip Clarke would assume responsibility for its British operations.
"Tesco plc announces today that Richard Brasher has decided to step down from the board with immediate effect and to leave the company in July once he has effected a smooth transition of the UK business to Philip," it said.
"Seeing Richard Brasher leaving may appease some investors as he was one of the key figures of the Big Price Drop campaign that turned out to be very disappointing and led to the profit warning," said Atif Latif, director of trading at Guardian Stockbrokers in London.