Boots has been facing competition from supermarkets

The news comes two weeks after the Nottingham-based firm issued a profits warning in the light of subdued trading at the start of 2005.

Howard Dodd had decided to step down before that announcement, and will receive no compensation for loss of office, news agency Reuters reported.

He will stay in place until full-year results in May, in order to enable "an orderly transition" the firm said.

On 1 March the group said it expected annual operating profits for its core Boots the Chemists chain to be in the range of �465m-�475m, while analysts had forecast �490m-�500m.

Boots said it had been prepared for a subdued market but trading since January had "deteriorated further".

New lines

Boots was founded in 1849 as a shop selling herbal remedies in Nottingham.

The company has recently been expanding into new lines in the face of stiff competition within the beauty and health product sector.

The main cut-price challenge has come from supermarkets such as Tesco and Asda, which have strayed into its traditional drugstore territory.

The profits warning came on the back of an increase in like-for-like sales of 2.6% over the key Christmas period.