By James Davey, Muvija M
LONDON (Reuters) – Struggling British supermarket Asda said on Saturday that veteran retailer Allan Leighton would return as executive chairman, more than two decades after serving as CEO when he turned around the company before selling it to Walmart (NYSE:).
Britain’s third-largest supermarket chain, now majority owned by private equity firm TDR Capital, has lost market share to rivals including market leader Tesco (OTC:) and number 2. Sainsbury (LON:)’s, according to monthly data.
Leighton will succeed fellow veteran Stuart Rose, who has been chairman since 2021 and took on executive responsibilities from co-owner Mohsin Issa in September.
Earlier this month, Rose said Asda had “somewhat lost the plot”, highlighting inadequate store standards, poor product availability and prices that were not as competitive as in the past. But he said the matter can be resolved.
At the same time, Asda reported a 4.8% drop in comparable sales in the third quarter and warned that measures in the new Labor government’s budget would cost the group 100 million pounds ($125 million) last month.
Leighton was CEO of Asda from 1996 to 2001, orchestrating a turnaround with then chairman Archie Norman before the company was sold to Walmart for £6.7 billion. Leighton was also president of Canadian retail group Loblaw and chairman of British Co-op and the Royal mail (LON:).
Asda said Rose will remain on the board to ensure an orderly transition before she steps down.
“I am happy to return to the company, which has always been a special place to me,” said Leighton.
Gary Lindsay (NYSE:), managing partner of TDR Capital, said Leighton’s “experience and understanding of Asda will serve us well as he leads the company into the next phase of its development”.
Walmart will retain a 10% stake in Asda.
($1 = 0.7980 pounds)
