Former Asda executive Judith McKenna expresses concern over the supermarket’s performance post-acquisition.
- McKenna highlights the entrepreneurial potential of the Issa brothers during the acquisition.
- Despite initial promise, Asda struggles with market share decline and IT transformation issues.
- The transition from Walmart’s systems has led to difficulties affecting employees and customers.
- McKenna acknowledges the strength of Asda’s business and its workforce while hoping for its recovery.
Judith McKenna, a former executive at Asda, recently shared her concerns about the supermarket’s current state following its acquisition by TDR Capital and the Issa brothers. McKenna expressed that the supermarket is ‘clearly not where it should be,’ and its struggles have been personally disappointing to her.
During the FT Live Future of Retail conference, McKenna noted that one of the key advantages of the Issa brothers in acquiring Asda was their entrepreneurial spirit and potential to revolutionize UK supermarket retailing. However, she admitted, ‘Through circumstances; economy, distraction, whatever that has been. It’s clearly not where it needs to be.’
The past year has been particularly challenging for Asda as it grapples with declining market share and substantial debt issues. One significant hurdle has been the ongoing IT transformation from its former Walmart systems, which has encountered glitches impacting payroll and customer orders. McKenna remarked on the difficulties of such transitions, stating, ‘It is way harder to get out of systems, than it is to get into them.’
Despite these challenges, McKenna conveyed her esteem for Asda’s business and its dedicated employees. She acknowledged, ‘That is a good business and great colleagues. Ultimately, I wish them well, but does it hurt my heart a little? Yes, it does.’
Asda’s path to stability remains fraught with challenges, but its resilient workforce and business model provide hope for the future.
