Asda turnaround could take 3-5 years, says incoming chair
Leighton, who will outline a revival plan by the end of January, also said he was looking for a ‘really good leader’ who understood shoppers and managing people
Former Asda CEO Allan Leighton has said that a turnaround of the business could be a three to five year process, as he is set to help lead turnaround efforts in his new role as chair of the group. Speaking to The Guardian shortly following his appointment, Leighton said that his priority was now to “restore Asda’s DNA” through finding a new CEO, as well as improving pricing and availability. He claimed three to five years will “take us that long to get it right”.
Following his appointment as chair, Leighton yesterday (26 November) visited a number of Asda stores and spoke to all store managers through video conference. He also spoke to all staff at the group’s Leeds headquarters in person as he laid out his plan to restore the group’s performance.
As part of turnaround efforts, Leighton, who will outline a revival plan by the end of January, said he was looking for a “really good leader” who understood shoppers and managing people.
As well as a new CEO and improvements in pricing, Leighton also warned that Asda must address its IT issues, which developed once it moved off former owner Walmart’s systems.
He added he was “confident I have the support in this” from the group’s shareholders, including TDR Capital, Moshin Issa and Walmart.
This week, Asda announced that Leighton would be the group’s new executive chair, succeeding Stuart Rose who has served as chair since 2021.
Leighton has led a number of UK and international consumer businesses, including serving as a CEO of Asda from 1996 to 2001, president of Loblaw Companies, North America’s second largest food retail business, and nine years as chairman of The Co-op.
Earlier this month, it was reported that Asda was planning further job cuts after confirming that some 475 roles in its Leeds and Leicestershire offices will be made redundant.
It comes as the retailer reported a 2.5% decline in total revenues in the third quarter to £5.3bn excluding fuel, with like-for-like sales falling by 4.8% during the period.
