Allan Leighton, former CEO of Asda, has returned to spearhead the supermarket’s revival efforts.
- Leighton admits the turnaround could span three to five years to reset Asda’s fundamentals.
- A priority is recruiting a new CEO who understands shoppers and can manage people effectively.
- Asda’s recent challenges include IT system shifts and increased tax burdens.
- The retailer’s market share has declined while competitors gain ground.
Allan Leighton has rejoined Asda to drive its transformative journey as the executive chair. His immediate focus is on rejuvenating the supermarket’s core operations by aligning pricing strategies and product availability with customer needs. The goal is to hire a visionary leader who might not necessarily have a retail background but possesses a deep understanding of consumer behaviour and effective team management.
In a recent discussion, Leighton acknowledged that reversing Asda’s fortunes will require substantial time and effort, with a projected span of three to five years. He underlined the importance of restoring Asda’s core values to win back customer loyalty and enhance service excellence.
Leighton’s vision aligns with the interests of Asda’s key stakeholders, including TDR Capital and the Issa brothers, who are committed to the firm’s growth. The retailer has faced obstacles such as IT system integrations following its separation from Walmart, which have affected its competitive edge.
Earlier reports highlighted a decline in Asda’s quarterly sales, compounded by an anticipated rise in taxation costs as signalled by the government’s latest fiscal policies.
Since its acquisition by TDR and the Issa brothers for £6.8 billion in 2020, Asda has struggled with market positioning. Despite efforts to improve customer engagement through better value propositions and service improvements, the supermarket continues to trail behind major players like Tesco and Sainsbury’s, as well as rapidly expanding discounters Aldi and Lidl.
Recent data from Kantar reveals a noticeable drop in Asda’s sales, leading to a reduction in its market share to 12.5%. This places further pressure on the retailer to reassess its competitive strategy and operational priorities.
Asda faces a challenging road ahead, but strategic leadership and stakeholder support could pave the way for recovery.
