Allan Leighton, former CEO of Asda, is returning as executive chair as the UK grocery giant faces declining sales.
- Leighton replaces Stuart Rose, who took on leadership responsibilities temporarily after co-owner Mohsin Issa stepped down.
- Rose will remain on the board during the transition, providing stability as Asda navigates financial challenges.
- Leighton is credited with revitalizing Asda in the 1990s and aims to enhance customer experience and value.
- Asda is dealing with a sales drop and a £100 million financial burden due to recent government budget changes.
In a strategic move to bolster leadership and revive its flagging sales, Asda has announced the return of its former CEO, Allan Leighton, as the new executive chair. This leadership change comes as the UK’s third-largest supermarket chain endeavors to navigate a challenging retail environment, marked by declining sales and increased financial pressures.
Leighton, who previously served as Asda’s CEO from 1996 to 2001, is stepping in for Stuart Rose, who had temporarily assumed day-to-day leadership responsibilities following the exit of co-owner Mohsin Issa. Rose, however, will remain on the board to ensure a smooth transition process. His interim leadership role was complemented by Rob Hattrell, an executive from TDR, the private equity firm that holds a significant stake in Asda.
This leadership shift is underscored by Leighton’s acknowledged expertise, having previously revived Asda in the late 1990s alongside Archie Norman, currently chair of Marks & Spencer. His strategic acumen was pivotal in steering Asda’s sale to Walmart, a landmark move in the company’s history. Leighton expressed enthusiasm about his return, emphasizing the significant potential for Asda to advance and enrich the customer experience while fostering a unique environment for its employees and clients.
Stuart Rose commended Leighton’s return, recognizing his significant role in shaping Asda’s future. “The retailer,” Rose remarked, “stands to gain immensely from Allan’s extensive experience and leadership prowess.” An ardent supporter, Rose affirmed his ongoing commitment to Asda as a shareholder and customer.
Amidst this leadership transition, Asda contends with a succession of financial challenges, including a notable decline in quarterly sales and an anticipated £100 million impact from the government’s latest budget. Efforts to mitigate these challenges have been robust, with Asda enhancing product availability, improving customer engagement, and committing to value-driven strategies aimed at reinvigorating its market presence.
As Allan Leighton returns to Asda, his leadership is set to play a crucial role in steering the retailer through its current challenges towards renewed growth.
