Struggling British supermarket chain Asda, which is majority-owned by private equity firm TDR Capital, has reappointed veteran retail leader Allan Leighton as Executive Chairman, over two decades after he last served as CEO, according to a report by Reuters.
In his previous stint at the retailer, between 1996 and 2001, Leighton led a turnaround before the company’s £67.7bn sale to Walmart.
Asda, currently Britain’s third-largest supermarket, has been losing ground to rivals including market leader Tesco and second-place Sainsbury’s, according to recent data, and is under pressure to address declining market share and operational issues.
Leighton will replace Stuart Rose, who has served as chairman since 2021, and recently took on executive duties from co-owner Mohsin Issa, who co-acquired Asda in 2021 alongside his brother and TDR Capital, with Walmart retaining a 10% stake. Rose will remain on the board to oversee a smooth leadership transition.
Earlier this month, Rose admitted that Asda had “slightly lost the plot,” citing issues such as poor store standards, weak product availability, and less competitive pricing. He described the business as fixable but in need of significant improvement.
Asda’s struggles were further highlighted in its third-quarter results, which showed a 4.8% decline in like-for-like sales. The company also warned of a £100m ($125m) financial impact from measures in the new Labour government’s recent budget.
As well as Asda, Leighton’s past experience includes leadership roles at Loblaw Companies in Canada and as chairman of Royal Mail and The Co-op in the UK.
Gary Lindsay, managing partner at TDR Capital, expressed confidence in Leighton’s leadership, stating that his “experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development.”
