In a strategic move to enhance its operations, Asda has appointed Allan Leighton as its new chair, succeeding Lord Stuart Rose. Leighton, who has a strong history with the supermarket giant, is tasked with revitalising the brand amidst declining sales.
Allan Leighton, a former chief executive of Asda from 1996 to 2001, returns to the company with a clear mandate to restore its competitive edge. His immediate focus is on reinstating Asda’s core values, which involves improving pricing strategies, enhancing product availability, and recruiting a new chief executive officer. Leighton acknowledges that these changes may require a timeframe of three to five years to fully materialise.
During his previous tenure, Leighton was instrumental in Asda’s successful £6 billion acquisition by Walmart in 1999. His return is marked by a comprehensive revival plan expected by January’s end. Central to this plan is the search for a leader who excels in management and possesses a deep understanding of consumer needs. Moreover, Leighton intends to address existing IT challenges, as Asda has suffered significant setbacks due to difficulties in transitioning from Walmart’s systems.
Shareholders, including Walmart, TDR Capital, and EG Group CEO Mohsin Issa, unanimously agree on the necessity for Asda’s growth. Leighton expresses enthusiasm about his return, emphasising the substantial potential that Asda holds for future expansion. Meanwhile, in response to a recent decline in sales, Asda has mandated a minimum of three office days per week for staff and begun reducing head office positions.
The latest statistics from Kantar revealed that in the 12 weeks leading up to November 3, Asda experienced a notable 5.5% drop in sales. Furthermore, its market share decreased by one percentage point, settling at 12.5%. These figures underline the urgency of Leighton’s mission to reinvigorate the company and address the challenges ahead.
The path to Asda’s resurgence under Allan Leighton’s leadership is clearly defined yet challenging. With a focus on core values and strategic leadership, Leighton aims to steer the company towards a more competitive and successful future.
