Davis has been chair of the board since May 2013 after the ‘Big Four’ grocer bought 50% stake in Lloyds Banking Group for £248m.
He is also chairman for Global RadioData Communications (GRC), Bupa and Future for Heroes.
Davis also holds the position of non-executive director of Experian and has “extensive experience” in the UK and Asia with previous positions including managing director of India for Jardine Fleming.
He will continue his role as CEO until the end of May and will be succeeded by retail and operations director Simon Roberts, who will start his new role from 1 June.
The news follows Sainsburys launching its first ‘On The Go’ convenience store in Mansion House London today (12 February).
The new store combines fresh in-store produce with convenient ways to shop with Sainsburys and Argos.
Nine more ‘On The Go’ sites will open across the UK, including stores in Bristol, Edinburgh, Glasgow and London in the next few months.
Sainsburys now employs 178,000 employees and has over 1,400 sites across the UK as well as 900 Argos stores and 16 Habitat sites in 16 locations and online.