Supermarket Asda has hired its former Chief Executive Allan Leighton as its new Chairman to support efforts to revive the business after a difficult few years.
Leighton, 71, will replace another retail veteran, Lord Stuart Rose, who has held the role since 2021. Lord Rose was recently tasked with kickstarting Asda’s turnaround strategy after co-owner Mohsin Issa stepped down from running the business in September. Reports said he was heavily involved in efforts to appoint Leighton and will leave the business once the new Chairman is settled into the role.
While Leighton will be Asda’s Chairman for the foreseeable future, the retailer is continuing its long-running search for a Chief Executive.
Leighton spent five years running Asda between 1996 and 2001, during which time he oversaw the company’s sale to Walmart in 1999. He subsequently went on to become President of Loblaw Companies, North America’s second-largest food retailer, and spent nine years as Chairman of the Co-op.
Leighton said, “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."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.”
Lord Rose added, “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.”
Gary Lindsay, Managing Partner of TDR Capital, said, “We would like to thank Stuart for the role he has played over the past three years and for the work he has done to help position Asda for long-term success. Asda today 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. We are looking forward to working with Allan to help Asda deliver on its potential.”
Leighton’s arrival comes at a turbulent time for the UK’s third-largest supermarket, which is scrambling to turn around its fortunes following a prolonged run of falling sales and market share losses since being acquired by TDR Capital and the Issa brothers in 2021.
Earlier this month, Lord Rose said Asda had “lost the plot”, highlighting inadequate store standards, poor product availability and prices not as sharp as they have been in the past. But he said the business was fixable, and after taking charge, he cut back on home working for administrative staff and scrapped around 475 head office roles.
However, with Asda saddled with huge levels of debt, analysts suggested that Leighton faces a harder task turning around Asda now than during the rescue mission he took on in the Nineties.
