Allan Leighton returns to Asda, aiming for a three-to-five-year turnaround.
- Focus on restoring Asda’s core identity with improvements in pricing and availability.
- Plans to hire a new CEO to lead Asda’s revival and tackle IT issues.
- Shareholders agree on the necessity of growth despite recent declines in sales.
- Leighton looks to reinstate strong leadership after previous successful tenure.
Allan Leighton, Asda’s returning chair and former CEO, has outlined a bold plan to steer the retailer back to its former glory. Leighton, who once revived Asda’s performance in the late 90s, takes on the challenge of turning around the company within three to five years. His immediate focus is on restoring the grocer’s DNA by addressing fundamental issues such as pricing, product availability, and leadership.
Leighton’s strategy includes appointing a capable new CEO by the end of January, someone who can effectively manage both people and the expectations of shoppers. There is also an urgent need to address Asda’s technological disadvantages, which have lingered since its operations diverged from Walmart’s systems. These IT issues have eroded Asda’s competitive edge, necessitating swift and decisive action.
The decline in Asda’s sales figures paints a clearer picture of the challenges ahead. According to data from Kantar, Asda was one of the few leading retailers to see a decrease in both sales and market share over the three months leading to early November. This decline underscores the importance of Leighton’s goals to enhance business operations and expand market share.
A united front among Asda’s shareholders, including Walmart and investment entities like TDR Capital and the EG Group, affirms the necessity of growth. Leighton expresses enthusiasm about returning to a company he holds in high regard, recognizing significant potential for improvement and expansion.
Recently, Asda has implemented measures such as increasing in-office workdays and reducing head office staff as part of efforts to stabilize its finances amidst declining sales. These steps highlight the urgency of Leighton’s mission to enact change and usher in a period of growth and revitalization.
Leighton’s ambitious plans and strategic leadership are vital for Asda’s challenging road to recovery.
