Stuart Rose, executive chairman of British retailer Asda, has stepped down from his role and veteran Allan Leighton will succeed him, the retailer announced last week.
Leighton led the struggling British supermarket group as CEO from 1996 to 2001, when he turned around the business before selling it to Walmart.
Britain’s third-largest grocer, now majority owned by private equity firm TDR Capital, has been losing market share to rivals, including market leader Tesco and number-two retailer Sainsburys, according to monthly data.
Rose has been chair of the group since 2021 and in September, he assumed the executive responsibilities of co-owner Mohsin Issa.
Earlier this month, Rose said Asda had “slightly lost the plot”, highlighting inadequate store standards, poor product availability and prices not as sharp as they have been in the past.
However, he added that the business is fixable.
At the same time, Asda reported a 4.8% fall in third quarter like-for-like sales and warned that measures in the new Labour government’s budget last month would cost the group £100 million.
Allan Leighton
During Leighton’s previous tenure, he drove a turnaround with then-chairman Archie Norman before the business was sold to Walmart for £6.7 billion.
Leighton also served as president of Canadian retail group Loblaw and chairman of Britain’s Co-op and the Royal Mail.
Asda said Rose will remain on the board to ensure an orderly transition before stepping down.
Leighton said, “I am delighted to be returning to the business which has always been a special place for me.”
Gary Lindsay, managing partner of TDR Capital, said Leighton’s “experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development.”
Walmart retains a 10% stake in Asda.
Labour Budget
On Thursday, Rose criticised the Labour government’s budget, telling LBC Radio, “I don’t think government understands business is the real truth.”
He stated that while he predicted price rises and restricted pay increases for workers, the restrictions may also dissuade investors by stunting industry growth, and that the new inheritance tax on agricultural land could disrupt food supply.
Rose said, “We’re constantly saying ‘oh we must wean ourselves off importing foodstuffs from abroad’ and yet at the same time, we’re trying to shoot ourselves in the foot with a policy that may not be helpful.”
Multiple surveys have shown corporate confidence took a hit after finance minister Rachel Reeves announced an additional £25 million in taxes a year to rebuild public services.
Read More: Gloom Spreads Across UK Retailers Following Budget Tax Rises – CBI
