Asda has appointed former chief government Allan Leighton as its new chair, changing Lord Stuart Rose amid ongoing challenges together with an IT overhaul and declining gross sales.
Leighton, who led Asda from 1996 to 2000, is about to steer the UK’s third-largest grocery store chain by way of a crucial interval of transformation.
Lord Rose, 75, who served as chair since 2021 and took on day-to-day management obligations in September alongside Rob Hattrell of TDR Capital—Asda’s majority stakeholder—will stay on the board briefly to make sure a easy transition earlier than stepping down.
Leighton, 71, is famend for revitalising Asda within the late Nineties alongside Archie Norman and orchestrating its sale to Walmart. Expressing his enthusiasm about rejoining the corporate, he stated, “I am delighted to be returning to the business. The potential for Asda now is significant.”
Asda has confronted a sequence of challenges in latest months, together with product availability points, considerations over retailer cleanliness, a petroleum leak at it’s petrol station in Bramley in Surrey affecting the areas water provide, and a decline in buyer expertise. The retailer reported a 2.5% drop in whole revenues, excluding gas, and a 4.8% lower in like-for-like gross sales for the quarter ending 30 September. Moreover, it has misplaced market share amid fierce competitors.
The corporate is within the strategy of disentangling its IT programs from former proprietor Walmart, a posh job that has led to issues with payroll and on-line orders. Regardless of these hurdles, Hattrell has acknowledged that the IT overhaul is nearing completion.
Leighton emphasised the necessity for Asda to refocus on its worth proposition, saying the grocery store should go “back to the future but with modernity” to regain its aggressive edge. Below his management, Asda will proceed its seek for a brand new chief government.
Gary Lindsay, managing companion of TDR Capital, commented, “Asda has both a leading superstore estate and a strong position in every format, and Allan’s experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development.”
Lord Rose famous that Asda would “benefit enormously from Allan’s experience” and expressed his intent to help the chain “as a shareholder and customer over the coming years.”
