Former Asda CEO Allan Leighton returns as executive chairman

Allan Leighton is about to make a sensational return to Asda as its new government chairman.

The retail veteran, 71, was Asda’s chief government from 1996 to 2000, and was instrumental in a dramatic turnaround within the nineties, following his recruitment by Asda’s then chairman Archie Norman, initially as advertising and marketing director, in 1992. After staving off chapter the retailer went on to get pleasure from a unprecedented interval of development, reducing costs and opening the George style model, earlier than being purchased by Walmart in 1999 for £6.7bn.

He’s now being parachuted into the Leeds-based chain within the hope he can as soon as once more work his magic, because it flounders in a equally perilous place.

Asda’s market share has plunged from 14.8% to 12.5% [Kantar, 12 w/e 5 November] because it was acquired from Walmart in 2021, in a £6.8bn deal that noticed EG Group forecourt entrepreneurs Mohsin and Zuber Issa crew up with US personal fairness agency TDR Capital.

Leighton will begin within the new function on Monday, with visits to shops deliberate for tomorrow (Sunday). The hope is that his return to the enterprise the place he cast his repute will increase morale, and can assist to recruit, reassure and help a CEO.

Since CEO Roger Burnley stepped down, quickly after the 2021 deal was accomplished, the personal fairness consortium has been unable to influence quite a few candidates it has approached to tackle the job, regardless of a beneficiant £10m pay packet. 

Return to glory

Leighton advised The Grocer it was “again to the long run – with modernity” and vowed to return it to its former glory.

“We have to calm issues down, get colleagues again on facet, and rediscover Asda’s DNA. It’s again to the long run – with modernity.”

In a press release launched in the present day Leighton mentioned he was “delighted to be returning to the enterprise, which has all the time been a particular place for me.

”The potential for Asda now’s important, and my focus shall be to work with the management crew to assist make Asda particular for our colleagues and hundreds of thousands of shoppers.”

Leighton’s appointment will lead to present government chairman Stuart Rose stepping again from the function, returning to the board as a non-executive. Rose will proceed to chair the EG Group.

Rose mentioned Asda would “profit enormously from Allan’s expertise of main the enterprise and on behalf of the board I’m happy to welcome him again. I look ahead to persevering with to help Asda as a shareholder and buyer over the approaching years.”

He added that it had been “a privilege to work alongside the Asda crew over the previous three years and to help the enterprise by this era of transition”.

Funding

Shareholders have invested £3.8bn within the final three years to create a retailer with a presence in each format, buying and changing nearly all of EG Group’s forecourts to develop its retailer footprint from 623 to 1,200 shops whereas additionally including quite a few food-to-go websites through natural development and strategic acquisitions. It’s additionally launched a profitable loyalty app, which now has six million lively clients, accounting for greater than half of complete transactions.

Rose was beforehand non-executive chairman however felt compelled to step in final month, on the age of 75, with Mohsin Issa stepping apart, amid concern over Asda’s efficiency for the reason that acquisition, which Rose dubbed “embarrassing”.

Within the 24 years since leaving Asda Leighton has spent most of his profession in non-executive roles, chairing Enterprise within the Neighborhood, Lastminute.com and the Royal Mail. After a short stint as CEO of jewelry retailer Pandora from 2013-14, he turned the first-ever unbiased chairman of the Co-operative Group, which he held till February this 12 months.

He at present chairs the boards of Scottish drinks enterprise BrewDog, Pizza Categorical and European style retailer C&A.