Asda has appointed former chief executive Allan Leighton as its new chair, replacing Lord Stuart Rose amid ongoing challenges including an IT overhaul and declining sales.
Leighton, who led Asda from 1996 to 2000, is set to steer the UK’s third-largest supermarket chain through a critical period of transformation.
Lord Rose, 75, who served as chair since 2021 and took on day-to-day leadership responsibilities in September alongside Rob Hattrell of TDR Capital—Asda’s majority stakeholder—will remain on the board temporarily to ensure a smooth transition before stepping down.
Leighton, 71, is renowned for revitalising Asda in the late 1990s alongside Archie Norman and orchestrating its sale to Walmart. Expressing his enthusiasm about rejoining the company, he said, “I am delighted to be returning to the business. The potential for Asda now is significant.”
Asda has faced a series of challenges in recent months, including product availability issues, concerns over store cleanliness, a petrol leak at it’s petrol station in Bramley in Surrey affecting the areas water supply, and a decline in customer experience. The retailer reported a 2.5% drop in total revenues, excluding fuel, and a 4.8% decrease in like-for-like sales for the quarter ending 30 September. Additionally, it has lost market share amid fierce competition.
The company is in the process of disentangling its IT systems from former owner Walmart, a complex task that has led to problems with payroll and online orders. Despite these hurdles, Hattrell has stated that the IT overhaul is nearing completion.
Leighton emphasised the need for Asda to refocus on its value proposition, saying the supermarket must go “back to the future but with modernity” to regain its competitive edge. Under his leadership, Asda will continue its search for a new chief executive.
Gary Lindsay, managing partner 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 noted that Asda would “benefit enormously from Allan’s experience” and expressed his intent to support the chain “as a shareholder and customer over the coming years.”
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Allan Leighton returns to Asda as chair, succeeding Stuart Rose