ASDA has begun a fresh search for a new boss, as newly appointed chairman Allan Leighton seeks to turn around the struggling retailer's fortunes.
The move comes after Asda suffered its worst Christmas performance in nearly a decade, with sales falling by 5.8 per cent in the last three months of 2024. The drop has put added pressure on Leighton, who returned to lead the company in November, the Telegraph reported.
This isn't Leighton's first time at Asda's helm. He previously ran the supermarket from 1996 to 2000, where he successfully improved the business before selling it to American retail giant Walmart. Now, he faces perhaps an even bigger challenge.
The supermarket has been without a permanent chief executive since 2021, when Roger Burnley left following disagreements with TDR Capital, the private equity firm that partly owns Asda.
Since then, co-owner Mohsin Issa has been running daily operations, but the arrangement hasn't stemmed the company's declining market share, which has fallen from 14.6 per cent to 12.5 per cent since 2021.
Unlike previous attempts to fill the role, Leighton is looking for someone to work alongside him rather than under him. The position comes with an attractive salary package worth up to £10 million yearly, but finding the right person has proved challenging.
Industry sources say numerous candidates have already turned down the job.
According to reports, Leighton isn't waiting for the new appointment to begin making changes. He's already started shaking things up, recently letting go of 13 regional managers as part of a broader reorganisation. The company is also planning to slash prices soon in a bid to win back shoppers.
"We need to get back to Asda's roots," Leighton explained, stressing his goal to make the supermarket more competitive and focus on providing value for working families doing their weekly shop.
However, retail experts suggest Leighton, despite his experience, can't do it alone. Clive Black, an analyst at Shore Capital, noted that while Leighton remains "a force for good" even at 71, he'll need to build a strong leadership team to help turn the supermarket around.
