Retail Veteran Leighton Returns to Lead Asda, Succeeding Stuart Rose
British supermarket giant Asda has announced the return of Allan Leighton as its new executive chairman, marking a significant leadership change at a time when the company is facing mounting challenges. Leighton, who previously served as the CEO from 1996 to 2001, was credited with transforming the company before it was sold to Walmart for £6.7 billion. He succeeds Stuart Rose, who has been chair since 2021 and assumed executive responsibilities in September of this year.
Asda, now majority-owned by private equity firm TDR Capital, has been struggling to maintain its market position, losing ground to rivals such as Tesco and Sainsbury’s. The company has reported a 4.8% decline in like-for-like sales in the third quarter and a warning that recent government measures would result in a £100 million ($125 million) hit to its finances.
Leighton’s Return: A Strategic Move to Revive Asda
Allan Leighton’s return comes at a critical time for Asda, which has seen its market share erode in recent months. The grocer has faced criticism for poor store standards, inconsistent product availability, and less competitive pricing. Earlier this month, outgoing chairman Stuart Rose remarked that Asda had “slightly lost the plot,” though he remained optimistic about the company’s prospects, stating that the business was fixable.
Leighton, known for his pivotal role in revitalizing Asda in the late ’90s and early 2000s, will now steer the company through a period of uncertainty. He also brings extensive retail experience from his time as president of Canadian retailer Loblaw and chairman of Britain’s Co-op and Royal Mail.
Leadership Transition and Future Plans
Stuart Rose will remain on Asda’s board during the leadership transition to ensure continuity before stepping down. Gary Lindsay, managing partner of TDR Capital, expressed confidence that Leighton’s “experience and understanding of Asda” would guide the company as it embarks on its next phase of development.
Walmart’s Continued Stake in Asda
Despite the leadership change, Walmart retains a 10% stake in Asda, maintaining a significant, though minority, interest in the supermarket chain.
