British supermarket chain Asda announced on Saturday that Allan Leighton, a seasoned retail executive, will return to the company as executive chairman. Leighton previously served as CEO
more than two decades ago, during which he successfully revived the business and oversaw its sale to Walmart.
Currently Britain’s third-largest grocer, Asda has been struggling to maintain its market share, losing ground to competitors like industry leader Tesco and second-ranked Sainsbury’s, according to recent market data.
Leighton will take over from Stuart Rose, who has been chair since 2021 and recently assumed executive responsibilities from co-owner Mohsin Issa. Rose, a respected figure in the retail sector, has been critical of Asda’s current performance, noting earlier this month that the company had “slightly lost the plot” due to poor store standards, subpar product availability, and less competitive pricing. However, he expressed confidence that the business could be turned around.
The leadership change comes as Asda grapples with challenges, including a 4.8% decline in like-for-like sales in the third quarter. Additionally, the company warned that recent policy changes in the Labour government’s budget would cost it £100 million ($125 million).
Leighton’s return is seen as a strategic move to leverage his extensive retail expertise. From 1996 to 2001, he worked alongside then-chairman Archie Norman to orchestrate a major turnaround at Asda, culminating in its £6.7 billion sale to Walmart. Leighton has also held leadership roles at Canadian retail giant Loblaw, Britain’s Co-op, and Royal Mail.
Asda confirmed that Rose will remain on the board to facilitate a smooth transition before stepping down.
“I am delighted to be returning to a business that has always held a special place for me,” Leighton said.
Gary Lindsay, managing partner at TDR Capital, which holds a majority stake in Asda, expressed confidence in Leighton’s leadership. “His experience and understanding of Asda will be invaluable as he guides the company into its next phase of development,” Lindsay said.
Walmart, which sold the majority of its stake in Asda in 2021, retains a 10% share in the company. Photo by ASDA Blackburn by Hassan Jawad, Wikimedia commons.