Asda has appointed former CEO Allan Leighton as its new chairman, replacing Lord Stuart Rose amid ongoing challenges including an IT overhaul and falling sales.
Leighton, who led Asda from 1996 to 2000, will lead Britain’s third-largest supermarket chain through a critical period of transformation.
Lord Rose, 75, who has been chairman since 2021 and took on day-to-day leadership responsibilities in September, along with Rob Hattrell of TDR Capital – Asda’s majority shareholder – will remain on the board temporarily to ensure a smooth transition before stepping down .
Leighton, 71, is known for reviving Asda in the late 1990s with Archie Norman and orchestrating its sale to Walmart. He expressed his excitement about returning to the company, saying: “I am happy to return to the company. The potential for Asda is now significant.”
Asda has faced a series of challenges in recent months, including product availability issues, concerns about store cleanliness, a petrol leak at its Bramley petrol station in Surrey that affected the area’s water supply, and a decline in the customer experience. The retailer reported a 2.5% decline in total sales, excluding fuel, and a 4.8% decline in comparable sales for the quarter ended September 30. Moreover, it has lost market share due to intense competition.
The company is in the process of unbundling its IT systems from former owner Walmart, a complex task that has led to problems with payroll and online ordering. Despite these hurdles, Hattrell has stated that the IT overhaul is almost complete.
Leighton highlighted the need for Asda to refocus on its value proposition, saying the supermarket needs to “go back to the future, but with modernity” to regain its competitive advantage. Under his leadership, Asda will continue its search for a new CEO.
Gary Lindsay, managing partner of TDR Capital, commented: “Asda has both a leading superstore domain and a strong position in every format, and Allan’s experience and understanding of Asda will stand us in good stead as he takes the business into the next phase of success leads. its development.”
Lord Rose noted that Asda would “benefit enormously from Allan’s experience” and expressed his intention to support the chain “as a shareholder and customer for years to come”.