Asda chair Leighton says turnaround on track despite Aldi threat
10 reported
Asda chair Allan Leighton, who returned to lead the business in November 2024 after a 20-year absence, insists his turnaround plan is on track and that it is not inevitable Aldi will overtake Asda as Britain’s third-biggest supermarket. About 18 months into his tenure, grocery sales and market share continue to fall, with Aldi less than one percentage point away in market share. Leighton acknowledges that the “Project Future” technology transfer from former owner Walmart’s systems cost close to £1bn and left shelves empty, putting plans six months behind schedule, but says the IT is now stable. He points to improvements in availability, a new deal with Ocado to modernise online operations, and a marketing campaign encouraging shoppers to “take a fresh look.” Leighton argues Asda’s strength lies in its combination of superstores, the George brand, fuel, convenience stores, and online, noting that almost 50% of its business does not come from food. He dismisses speculation about selling the Express convenience chain or merging with Sainsbury’s, saying such a deal was blocked in 2019 and is not on his radar. Leighton says the business is not held back by £600m annual debt payments, which he compares to dividends paid by competitors, and plans to expand George to up to £5bn in sales with 500 stand-alone stores within five years.
What’s reported
Allan Leighton returned as Asda chair in November 2024 after a 20-year absence.
Asda has 580 supermarkets, 517 convenience stores, and four stand-alone George outlets.
Aldi is less than one percentage point away from overtaking Asda in market share.
“Project Future” cost close to £1bn and put plans six months behind schedule.
Leighton says prices are now 4% to 7% cheaper than Tesco, Sainsbury’s, and Morrisons.
Asda pays £600m annually in debt payments, which Leighton calls equivalent to dividends.
Leighton wants 500 stand-alone George stores within five years and 20 to 25 new Express stores per year.
The Ocado deal will provide software for online delivery and click ’n collect but not robot-run warehouses.
“Ask Allan” suggestion system has received 4,000 messages.
A tropical tree display for bananas at the Killingbeck store drove a 10% increase in banana sales.
Key figures
Allan Leighton, chair of Asda
The Issa brothers and TDR Capital, owners of Asda (mentioned as buyers in 2021 takeover)
Sources: The Guardian
