Allan Leighton is back at Asda, taking over from Stuart Rose as executive chair.
- Leighton is recognised for transforming Asda in the late 1990s, but challenges remain.
- The supermarket battles declining sales, ownership changes, and IT issues.
- Leighton aims to boost Asda’s market position over the next three to five years.
- Can old leadership tactics revive the supermarket’s fortunes against strong competitors?
Allan Leighton, renowned for revitalising Asda between 1996 and 2001, now steps back into a leadership role as the supermarket’s executive chair. He replaces Lord Stuart Rose amidst Asda’s current struggles. The task of recovery is significant, with Asda having experienced a decline in market share from 13.5% to 12.5% over recent months, alongside a 5.5% drop in sales for the 12 weeks leading up to November.
Leighton’s past success at Asda is highlighted by his previous collaboration with Archie Norman, which saw the supermarket sold to Walmart for £6.7 billion in 1999. However, today’s challenges are manifold. Not only has Asda faced setbacks due to a problematic IT transformation initiative, known as Project Future, but it’s also burdened with substantial debts, job cutbacks, and an as-of-yet unresolved search for a chief executive officer.
Grocery Insight CEO Steve Dresser comments on Leighton’s return as unexpected yet logical. With experience including leadership roles at the Co-op, Royal Mail, and C&A, and currently at Brewdog and Pizza Express, Leighton’s credentials are fortified. However, Nick Bubb, a retail consultant, notes that morale and clarity of purpose within Asda need immediate attention.
Despite the bleak outlook, improvements have been attempted with efforts to enhance availability and customer experience. Yet, a looming £100 million increase in Asda’s tax bill compounds its challenges. Simon Walton of Berwick Partners believes in Leighton’s potential to steer Asda, noting his positive track record with the Co-op.
Dresser acknowledges the urgent need for a new CEO, emphasising that the immediate priority for Asda involves successfully navigating the festive season and formulating a solid plan within Leighton’s first 90 days. There is an underlying consensus that, despite personal strengths, Leighton will require robust team support from both current and former leaders to drive the transformation.
Leighton’s appointment brings hope, but Asda’s revival will require clear strategy and cohesive leadership.
