Asda has appointed former chief executive Alan Layton as its new boss, replacing Lord Stuart Rose amid ongoing challenges including an IT overhaul and falling sales.
Leighton, who led Asda from 1996 to 2000, is set to take the helm of the UK’s third-largest supermarket chain during a critical period of transformation.
Lord Rose, 75, who has served as chairman since 2021 and took on day-to-day leadership responsibilities in September alongside Rob Hatterill of TDR Capital – Asda’s majority shareholder – will remain on the board temporarily to ensure a smooth transition before stepping down.
Layton, 71, is best known for revitalizing Asda in the late 1990s alongside Archie Norman and orchestrating its sale to Walmart. He expressed his enthusiasm about returning to the company and said: “I am delighted to be back at work. The potential for Asda now is great.
Asda has faced a series of challenges in recent months, including product availability issues, concerns about store cleanliness, a petrol leak at its fuel station in Bramley in Surrey affecting the area’s water supply, and reduced customer experience. The retailer reported a 2.5% decline in total revenue, excluding fuel, and a 4.8% decline in like-for-like sales for the quarter ended September 30. In addition, it lost market share amidst fierce competition.
The company is working to separate its IT systems from previous owner Walmart, a complex undertaking that has led to problems with payroll and online orders. Despite these hurdles, Hattrell said the IT overhaul is nearing completion.
Leighton stressed Asda’s need to refocus on its value proposition, saying supermarkets must return “to the future but with modernity” to regain competitiveness. Under his leadership, Asda will continue its search for a new CEO.
Gary Lindsay, managing partner of TDR Capital, commented: “Asda has a leading supermarket and a strong position in every format, and Alan’s experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development.”
Lord Rose noted that Asda would “benefit greatly from Alan’s expertise” and expressed his intention to support the chain “as a shareholder and customer over the coming years”.