Asda has brought back its former chief executive Allan Leighton as its executive chair, replacing Stuart Rose as its sales continue to dive.
Lord Rose will remain on the board “to ensure an orderly transition before stepping down”, the retailer said in a statement.
He has served as chair since 2021, and took day-to-day responsibility for leading the grocer alongside Rob Hattrell, an executive at TDR, the private equity firm that owns a majority stake in the supermarket chain, after co-owner Mohsin Issa stepped down.
Leighton was Asda CEO from 1996 to 2001 and chaired the Co-op for almost a decade. He is credited with turning around Asda in the late 1990s along with current M&S chair Archie Norman, and orchestrating the retailer’s sale to Walmart.
“The potential for Asda now is significant, and my focus will be to work with the leadership team to help make Asda special for our colleagues and millions of customers,” Leighton said.
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He added: “Stuart has done an important job in helping to create a retailer with a presence in every format and I am delighted to be returning to the business which has always been a special place for me.
Rose said: “It has been a privilege to work alongside the Asda team over the past three years and to support the business through this period of transition.
“Asda will benefit enormously from Allan’s experience of leading the business and on behalf of the board I am pleased to welcome him back. I look forward to continuing to support Asda as a shareholder and customer over the coming years.”
Earlier this month, the grocer reported a drop in quarterly sales and warned of a £100m spike in its tax bill following changes announced in the government’s latest budget.
The group, which was sold to the Issa brothers and TDR for £6.8bn in 2020 by Walmart, has been busy making improvements for customers in recent months in a bid to revive its poor sales. This includes boosting availability, enhancing the customer experience, and investing in value.
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