Tony Leon, the boss of Coles struggling liquor division, will retire in June and according to some media reports will be replaced by Brendan Sweeney, while former Kevin Rudd adviser and current Coles liquor finance director, Andrew Charlton will run the retail operations.

Industry publication The Shout reported today that Mr Leon had begun to contact suppliers saying he would retire in June after leading the supermarket liquor business in 2008.

The move is also seen as a part restructure of the liquor division which has lagged behind rival Dan Murphy’s in terms of sales performance and has taken some of the polish off Coles stellar performance over the last five years.

Coles lured Mr Leon out of retirement in 2008 to help transform the Coles business. It was hoped he could replicate the success he generated for Woolworths when it was developing its now market dominating Dan Murphy's big-box liquor banner group.

Coles liquor arm includes 1st Choice, Liquorland and Vintage Cellars.