In a strategic move to reverse declining sales, Asda has re-appointed Allan Leighton as executive chairman, succeeding Lord Stuart Rose.
Allan Leighton, who guided the supermarket chain during the 1990s, assumes the chairman role at a time when Asda is striving to pivot its business trajectory. His return marks a significant change in leadership, a decision that had substantial input from outgoing chair Lord Stuart Rose, according to a report by The Times.
Leighton previously led Asda as CEO from 1996 to 2001, a period marked by successful business turnarounds, aided by Archie Norman, the current chairman of Marks & Spencer. His extensive leadership experience includes a notable 10-year tenure as chair of the Co-op, demonstrating a robust capability in navigating complex retail environments.
Stuart Rose will remain on Asda’s board temporarily to facilitate a smooth transition. This comes after former CEO Mohsin Issa stepped back to concentrate on his role as the sole CEO of EG Group, triggering a leadership reshuffle that saw Rose taking on expanded responsibilities within Asda alongside TDR Capital, the primary stakeholder represented by board director Rob Hattrell.
Allan Leighton expressed enthusiasm about his return, emphasising the potential he sees for Asda. He aims to collaborate closely with the leadership team to enhance the supermarket’s appeal to both staff and customers. ‘The potential for Asda now is significant, and my focus will be to work with the leadership team to help make Asda special for our colleagues and millions of customers,’ he stated.
While Lord Stuart Rose reflects on his tenure as a privilege and extends his support for Leighton’s leadership, he plans to remain involved with Asda as a shareholder and customer. His sentiment reaffirms a positive outlook for the retailer’s future under Leighton’s guidance.
As Leighton steps into his role, Asda continues its search for a new CEO. In the interim period, it is expected that Leighton’s leadership style will be hands-on, although discussions suggest he may transition to a non-executive role once a new chief executive is appointed. Meanwhile, Asda’s strategic adjustments are keenly watched by industry observers, anticipating how these changes might impact the supermarket’s market position.
Allan Leighton’s appointment is a bold step for Asda as it seeks to revitalise its operations and regain market strength. With his vast experience and proven leadership, there is optimism that Asda will navigate its current challenges effectively.
