Analysts have welcomed news that the health and beauty retailer Boots is looking to replace its chief executive ahead of schedule.

Boots announced on Sunday that the current CEO Steve Russell would be replaced "in the near future", although he was not due to retire until 2005.

Investors responded well to the news, with shares rising 2%, while analysts told BBC News Online that the new recruit would need to use "radical" measures to restore the group's fortunes.

Boots has been struggling against competition from supermarkets and discount retailers in the last two years, prompting analysts to question the direction of the group as it tried to re-invent itself as a health and beauty operator.

Core problem

Boots chairman John McGrath said in a statement on Sunday: "For several months the issue of succession at Boots has been under consideration. It was my view, supported by the non-executives, that we should accelerate the succession process."

Mr Russell will remain in his job until a replacement is found, which Mr McGrath hopes will be in time for the annual general meeting next July.

Mr McGrath, who has been chairman since August 2000 and on the board since 1997, said he will step down at the annual shareholders meeting in July.

But analysts said it was the chief executive change that was key to Boots' success.

Iain MacDonald, retail analyst at Numis Securities, told BBC News Online:

"The problem is with the core chain, that's where they need to focus.

"If they don't do something radical, I can't see how it's suddenly going to get easier against the supermarkets."

Reinvention

Boots has invested in a number of new avenues in the past few years, including a foray into chiropody, laser eye surgery and the launch of 'Pure Beauty' High Street cosmetic shops.

But Mr MacDonald said tinkering with formats has not been enough to offset challenges from rivals.

"Boots have got problems which are going to be difficult to get over, no matter who the chief executive is."

David Stoddart, retail analyst at Teather & Greenwood, argues that Mr Russell has "done fantastically well" in his role as chief executive of Boots.

But he said a replacement could "make the assets sweat" and generate stronger returns.

"If they can find 'the chosen one', the aspects of a recovery are more likely," said Mr Stoddart.