Arthur Ryan, the founder of Primark, is stepping down as chief executive of the budget fashion chain.

Mr Ryan, who founded the retailer in 1969, will become chairman of the group, which is owned by Associated British Foods, and will be succeeded by Paul Marchant, currently Primark’s chief operating officer.

Primark, which began trading in Dublin 40 years ago, began opening out-of-town shops in Britain in 1973 and has since expanded to Spain, Portugal, the Netherlands and Germany

Primark has been one of the high street’s top performers during the recession, with sales up 7 per cent in the 12 months to September 12.

Mr Ryan said: “I am extremely proud of all that Primark has achieved. As chairman, I am looking forward to working with Paul to ensure the ongoing success and future development of the business.”

Mr Marchant joined Primark in January and has been working with the retail veteran since then. He will take the reins as chief executive on Monday.

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