Asda’s ex-boss returns as supermarket struggles with sales slump

Retailer drafts in Allan Leighton amid scramble to turn around fortunes

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Struggling retailer Asda has sought to recapture its former glory by hiring ex-boss Allan Leighton as its new chairman.
Mr Leighton has been drafted to replace Lord Rose, the former Marks & Spencer chief executive who has been at the helm since 2021. 
Lord Rose, 75, was recently tasked with kickstarting Asda’s revival after co-owner Mohsin Issa stepped down from running the business in September.
However, Lord Rose will give way to Mr Leighton on Monday. 
It marks a return to Asda House for the 71-year-old, who spent five years running the retailer between 1996 and 2001, during which he oversaw the company’s sale to Walmart in 1999.
He subsequently went on to become chairman of Royal Mail and The Co-op, while he was also president of Loblaw Companies, North America’s second-largest food retailer. 
His arrival comes at a turbulent time for Britain’s third-largest supermarket, which is scrambling to turn around its fortunes amid a slump in sales.
Following his appointment, Mr Leighton said: “Stuart has done an important job in helping to create a retailer with a presence in every format and I am delighted to be returning to the business which has always been a special place for me. 
“The potential for Asda now is significant.”
His priority will be attempting to regain some of the market share lost by Asda since it was bought by private equity giant TDR Capital and the Issa brothers in February 2021.
Since the debt-fuelled £6.8bn sale, Asda’s share of the grocery market in the UK has fallen from 14.6pc to 12.5pc, fuelling criticism of how the company has been managed under the Issas’ stewardship.
Asda’s decline prompted Lord Rose to say he was “embarrassed” by the supermarket’s performance in an interview with The Telegraph earlier this year.
Since taking charge of the day-to-day operations, Lord Rose has sought to stabilise the business and cut costs.
This led to almost 500 roles being scrapped earlier this month, with more redundancies expected next year. He also ordered thousands of administrative staff back to the office three days a week.
Lord Rose, who will remain on Asda’s board despite stepping back as chair, said:  “It has been a privilege to work alongside the Asda team over the past three years and to support the business through this period of transition. 
“Asda will benefit enormously from Allan’s [Leighton’s] experience of leading the business and on behalf of the board I am pleased to welcome him back.”
Mr Leighton will now work with bosses at TDR Capital to steer Asda’s turnaround, although bosses are still attempting to recruit a new chief executive.
Asda has been without a permanent chief executive since the abrupt departure of Roger Burnley in 2021, with the supermarket struggling to convince candidates to take on the job.
Gary Lindsay, managing partner of TDR, said: “We would like to thank Stuart for the role he has played over the past three years and for the work he has done to help position Asda for long-term success. 
“Asda today has both a leading superstore estate and a strong position in every format, and Allan’s experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development.”
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