New Chapter for Asda: Veteran Retailer Seeks Perfect Partner
Allan Leighton, the newly appointed chairman of Asda, is relaunching the search for a new chief executive to help steer the supermarket towards a brighter future. This move marks a fresh start for the company, which has been struggling to find the right leader since the departure of Roger Burnley in August 2021.
A Different Approach
Unlike his predecessor, Lord Rose, Leighton is looking for a candidate who can work alongside him, rather than someone he can oversee as chairman. This new approach means Leighton will maintain significant day-to-day involvement in Asda’s strategy, leveraging his extensive experience in the retail industry.
A Proven Track Record
Leighton’s return to Asda in November marked a homecoming of sorts, as he previously led the supermarket from 1996 to 2000. During his tenure, he successfully turned the business around and oversaw its sale to Walmart. However, analysts believe Leighton needs to build a stronger executive team around him to drive performance improvements.
The Search for a New CEO
The hunt for a new chief executive is a critical component of Leighton’s turnaround plan, which aims to address the alarming slump in sales at Asda. The company has been without a permanent CEO since Burnley’s departure, with co-owner Mohsin Issa taking charge of operations in 2022. Despite a large number of candidates being approached, Asda failed to attract a suitable replacement.
Challenges Ahead
City sources revealed that several candidates turned down the job due to concerns about working with Issa. To succeed, Leighton will need to adopt a fresh approach and bring in a new perspective to fix Asda and secure a new CEO. The veteran retailer has already started making changes, including a recent restructuring that saw 13 regional managers depart.
Reviving Asda’s DNA
Leighton’s goal is to “restore Asda’s DNA,” making the supermarket more competitive and appealing to its core customer base. He wants Asda to be able to satisfy the daily and weekly shopping needs of ordinary working people and their families, who demand value. To achieve this, the company is reportedly planning to launch a major round of price cuts in the coming days.
Pressure to Perform
Asda’s market share has declined significantly since it was taken over by private equity giant TDR Capital and the Issa brothers in February 2021. With sales slumping by 5.8% over the Christmas period, pressure is mounting on Leighton to demonstrate quick results. Analysts believe he will need a much stronger executive team to execute his plans for stabilization and recovery.
Leave a Reply