ALLAN LEIGHTON, chairman of Asda, has initiated significant cost-cutting measures to address the supermarket’s challenges following a poor Christmas sales performance.
According to The Telegraph, 13 regional managers have been let go as part of a restructuring aimed at reducing headcount and boosting performance.
The changes follow Asda’s weakest festive period since 2015, with sales dropping 5.8 per cent in the 12 weeks to 29 December.
A staff memo on 7 January confirmed that Asda’s supermarkets and express stores will now be grouped into 22 “sub-regions,” down from 30, resulting in fewer regional managers overseeing larger areas.
“Change is never easy, and unfortunately, we have had to say goodbye to a number of colleagues,” the memo stated.
The retailer, owned by TDR Capital and the Issa brothers since February 2021, has seen its market share decline to 12.5 per cent in December, down from 13.5 per cent a year ago. Asda is Britain’s third-largest supermarket.
Leighton, who previously ran Asda between 1996 and 2001, returned as chairman in November, succeeding Lord Rose. He has pledged to “restore Asda’s DNA” by cutting prices and improving product availability but warned it could take up to five years to revive the business, The Telegraph reported.
A spokesman for the GMB union criticised TDR Capital, saying, “TDR are driving a once thriving business into the ground, making Asda workers’ jobs harder in the process.”
An Asda spokesman defended the changes, stating, “These changes set us up to serve our customers in the best way for 2025 as we deliver Asda Price and other exciting propositions.”
The Telegraph reported that recently filed accounts showed TDR Capital partners shared £44 million in 2023, with the highest-paid partner receiving £2.9 million.
With members of the College of Commissioners and Indian ministers and officials in New Delhi last Friday (28)