In a major leadership shake-up, Asda has brought back its former chief executive Allan Leighton as executive chair, replacing Stuart Rose as the retailer grapples with declining sales.
Stuart Rose, who has served as Asda's chair since 2021, will remain on the board to "ensure an orderly transition before stepping down," the company confirmed in a statement. Rose had been overseeing the day-to-day leadership alongside Rob Hattrell, an executive at TDR Capital, the private equity firm that owns a majority stake in Asda, following the departure of co-owner Mohsin Issa.
Allan Leighton, who previously led Asda as CEO from 1996 to 2001, returns to the supermarket giant at a critical time. Leighton is widely credited with revitalising Asda in the late 1990s alongside Archie Norman, the current chair of Marks & Spencer, and orchestrating its subsequent sale to Walmart. His extensive retail pedigree also includes nearly a decade as chair of the Co-op.
“The potential for Asda now is significant, and my focus will be to work with the leadership team to help make Asda special for our colleagues and millions of customers,” Leighton said of his return. He added: “Stuart has done an important job in helping to create a retailer with a presence in every format and I am delighted to be returning to the business which has always been a special place for me.”
Stuart Rose, reflecting on his tenure, remarked: “It has been a privilege to work alongside the Asda team over the past three years and to support the business through this period of transition. Asda will benefit enormously from Allan’s experience of leading the business and on behalf of the Board I am pleased to welcome him back. I look forward to continuing to support Asda as a shareholder and customer over the coming years.”
The leadership change comes as Asda faces significant challenges. Earlier this month, the grocer reported a drop in quarterly sales and warned of a potential £100 million hit from the government’s latest budget. Asda, which was sold by Walmart to the Issa brothers and TDR Capital in a £6.8 billion deal in 2020, has been striving to reverse its fortunes through a range of initiatives. These include boosting product availability, enhancing customer experience, and investing heavily in delivering value.
Leighton's return signals a pivotal moment for the supermarket chain as it aims to regain its foothold in the competitive retail landscape. With his experience and past success at the helm of Asda, the retailer’s leadership hopes this move will help re-energise the brand and deliver long-term growth.
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