Asda reintroduces former CEO Allan Leighton as executive chair amidst declining sales.
- Leighton returns to replace Stuart Rose, who remains for a transitional period.
- Rose, chair since 2021, jointly led with TDR’s Rob Hattrell after Mohsin Issa’s step-down.
- Leighton led Asda in the late 1990s, significantly boosting its performance then.
- Recent sales slumps and a £100m budget impact prompt strategic leadership adjustments.
Asda has decided to reinstate Allan Leighton, its former chief executive, as executive chair as it navigates a period of declining sales. This weekend saw the changeover, replacing Stuart Rose who has been in the position since 2021. Rose will temporarily remain on the board to facilitate a smooth transition, according to Asda’s official statement.
Stuart Rose played a significant role in leading the supermarket alongside Rob Hattrell from TDR, the private equity firm holding a majority stake. This leadership arrangement followed the step-down of co-owner Mohsin Issa. As Leighton steps in, there is a strategic aim to revitalise Asda’s fortunes.
Allan Leighton previously held the CEO role at Asda from 1996 to 2001 and was instrumental in steering the company through transformative years. He worked with Archie Norman, now chair at M&S, to enhance Asda’s performance and orchestrated its sale to Walmart. Leighton expressed his optimism about Asda’s potential, highlighting his intention to work closely with the leadership team to enhance Asda for both employees and customers.
Leighton noted, “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.” His return brings hope for a strategic turnaround.
Stuart Rose, reflecting on his tenure, said it was a privilege to support Asda through its transitional phases. He expressed confidence in Leighton’s leadership, indicating Asda would greatly benefit from his experience. “Asda will benefit enormously from Allan’s experience of leading the business,” he stated, welcoming Leighton back on behalf of the Board.
The retailer recently reported a drop in quarterly sales alongside a financial warning about a £100 million impact from the government’s latest budget. Since being acquired by the Issa brothers and TDR in a £6.8bn deal in 2020, Asda has been committed to improving customer experience, availability, and value, efforts which are expected to continue under new leadership.
Asda looks to navigate its challenges with new leadership, aiming for a revitalised future.
