Allan Leighton returns to Asda as executive chair amidst declining sales.
- He replaces Stuart Rose, who will stay on the board temporarily.
- Leighton’s previous leadership spurred significant growth and a sale to Walmart.
- Rose appreciates Leighton’s return and plans to remain a supportive shareholder.
- The retailer aims to improve sales by enhancing customer experience and value.
Allan Leighton has been reappointed as executive chair of Asda in response to the company’s ongoing struggle with declining sales. He replaces Stuart Rose, who has been in the role since 2021. Rose will continue to serve on the board to facilitate a smooth transition until he steps down completely. This leadership change comes as Asda navigates challenging market conditions.
Leighton’s return to Asda marks a significant moment for the supermarket chain. Known for his pivotal role as CEO from 1996 to 2001, Leighton, along with Archie Norman, previously transformed Asda into a leading force in the retail sector and successfully orchestrated its sale to Walmart. His return is seen as a strategic move to leverage his expertise in driving growth and profitability.
Stuart Rose acknowledged the vital contributions he made during his tenure, highlighting the expansion of Asda’s reach across various retail formats. He expressed confidence in Leighton’s ability to lead the company through this current phase of recovery, stating, ‘Asda will benefit enormously from Allan’s experience of leading the business.’ Despite stepping down, Rose intends to remain engaged as a shareholder and customer.
Amidst these leadership changes, Asda continues to face a declining sales trajectory, exacerbated by recent government budget constraints projected to cost the retailer £100 million. The company, acquired by the Issa brothers and TDR Capital in a £6.8 billion deal, has been actively seeking to enhance consumer satisfaction through improved availability, enriched customer experiences, and strategic investments aimed at boosting value.
Allan Leighton’s strategic expertise is poised to guide Asda through its current challenges, aiming for a turnaround in performance.
