The former chief executive of the De Vere hotels group has emerged as a leading candidate to succeed Sir Stuart Rose as chief executive of Marks & Spencer.

The Times has learnt that Carl Leaver, who joined M&S last year to develop its international strategy, has been handed the further task of running the retailer’s homewares and internet businesses – which between them generate nearly £1 billion of sales a year.

The move is understood to have been announced to staff last week and comes after speculation that Mr Leaver has grown frustrated in his present overseas role.

Sir Stuart promised this year to give his management team the “elbow room” to develop themselves when he was promoted from chief executive to the controversial role of executive chairman.

Times Archive, 1964: Lord Marks and the retail revolution

To the man in the street he will be remembered as the real initiator of high quality, low cost clothes

• Marks & Spencer and Woman

Times Archive, 1974: M&S in the downturn

Since the business of fashion so clearly reflects the facts of life, it is not surprising that in a period of economic uncertainty one should sense some disenchantment with that business

• The key lesson of Marks and Spencer

Related Links

• Sir Stuart faces his biggest challenge

• M&S reveals poorest results since 2005

Experts said it was clear that Mr Leaver was now a leading internal candidate to succeed Sir Stuart when he steps down in 2011, alongside Kate Bostock, M&S’s head of clothing, and Ian Dyson, the group’s finance and operations director.

One analyst said: “The floor’s wide open and Carl is definitely in the running. He’s now got two of the big growth businesses under his wing, international and the internet. That also means he’s under more pressure.”

However, another analyst said that the appointment only highlighted the lack of retail experience among the current M&S executive team. Mr Leaver began his career with Pedigree Pet Foods in 1989 and all his subsequent senior roles have been in the leisure industry, with Forte, Whitbread and then De Vere. The analyst said: “M&S needs someone who has retail experience and can drive sales, I fear the chances of Carl Leaver succeeding in doing that are pretty slim. Succession has become an obsession at M&S. I think the fact it’s top of the agenda, and that trading has been very disappointing, are inextricably linked.”

M&S wants sales of £500 million a year from M&S Direct, its internet business, by 2010-11, and has said that it is “well on the way” to hitting the target.

John Dixon was head of homewares and M&S Direct until last month, when he took over as head of food after the profit warning that wiped £1 billion from M&S’s stock market valuation.

Since joining M&S last year, Mr Leaver, 40, has struck deals to take it into Central Europe and Eastern Europe and to expand its presence in India. A spokesman said: “This move will give Carl the opportunity to develop more hands-on retail experience.”

M&S shares closed up 4p, or 1.4 per cent, at 284p, amid speculation of stake-building by a mystery investor. Traders said that the Halley family, until recently the largest shareholder in Carrefour, the French supermarket chain, was being linked with the group. M&S refused to comment.

M&S confirmed that Emma Trayner, the daughter of George Davies, the fashion entrepreneur, was leaving Per Una, the clothing brand he sold to M&S four years ago. She has been working as a part-time consultant.

Times Recommends

• UK savings frozen after Landsbanki goes bust
• RBS shares fall under £1 on bailout fears
• Asian stocks rebound on Australian rate cut