Allan Leighton, the recently appointed chair of Asda, candidly acknowledged the significant undertaking ahead for the supermarket’s revival, setting a timeline of three to five years for this ambitious turnaround.
In an interview with The Guardian, Leighton, who just assumed the role from Lord Stuart Rose, outlined his strategic priorities aimed at reviving Asda’s core strengths. He stressed the importance of restoring the supermarket’s foundational principles, focusing on enhancing pricing strategies and improving product availability. The task of finding a new CEO who embodies leadership and has a profound understanding of consumer behaviour is also on his immediate agenda.
Leighton brings valuable insight from his previous tenure as CEO of Asda between 1996 and 2001, a period when he significantly boosted the company’s performance. He was instrumental in overseeing Asda’s £6 billion acquisition by Walmart in 1999 alongside Archie Norman, the current chair of Marks & Spencer. Leighton aims to replicate this success with a formulated revival plan to be implemented by the end of January, seeking a leader who can effectively manage personnel and address looming IT challenges.
The challenges facing Asda are underscored by recent figures from Kantar, which highlighted a 5.5% drop in sales and a decline in market share down to 12.5% over a twelve-week period ending 3 November. These figures prompt a sense of urgency in Asda’s strategic shifts, including a mandate for staff to return to office three days a week and a wave of job cuts at the headquarters.
Leighton communicated optimism about the prospects for Asda. He expressed his pleasure in returning to the company, a place he holds in high regard, emphasising the significant growth potential he perceives for the supermarket. He shared that the shareholders, including Walmart, TDR Capital, and EG Group’s Mohsin Issa, are aligned in their vision for Asda’s necessary expansion.
While the path to Asda’s recovery may be long, Allan Leighton’s determined approach coupled with strategic initiatives offers a hopeful outlook for restoring Asda’s market position.
