Retail Gazette’s Post

'Asda CEO: Five runners and riders following Allan Leighton’s return 🏁🔄 The search for Asda’s new CEO continues to push on as the struggling supermarket appoints Allan Leighton as its new executive chair. 👨💼🛍️ #Asda #RetailNews #CEO Get a better understanding of retail news with the largest source for public data 👉 https://lnkd.in/eC4HGBUv 📊#PublicData #RetailAnalysis by Retail Gazette about Asda

It’s not all about price and scale. JLP will never be the cheapest so will have to be better and different. #strategy There’s millions who love quality, personal attention, experience , service etc. Nothing you will find buying at Tesco. JLP is a cooperative with cooperative values, these values need to be turned into strategy. #retail #price #quality #differentiation #transformation

📢 UK retailer Asda has announced a series of new appointments: ➡️ Liz Evans has been named chief commercial officer for non-food and retail ➡️ Gemma Lightbody as business unit director for impulse grocery. More updates: https://lnkd.in/enS6g_u9 #appointment #retail #grocery #UK

Woolworths new Group CEO faces investors calls to simplify its business model and focus on core operation, i.e. Supermarkets. Coles supermarkets have been improving their performance while Woolworths has been developing its so called "retail ecosystem". Maybe this is happening at the expense of its "cash cow" supermarket business. (certainly noted physical store standards have dropped in some key areas of late) Maybe it is time for Woolworths leadership to "keep the main game, the main game"! #Retail #Supermarkets #WooliesChallenge #Colesimproving #SimpleBusinessModelsWin?

Why are Morrisons doing better than Asda? It's simple, one word. Leadership. Morrisons have a CEO brought in to do a job, a turnaround specialist who has been in retail almost 30 years & has a history of success. Asda don't have a CEO, there has been a vacancy since Roger Burnley left 3 years ago. You will not have a successful Retailer without a great CEO. A brilliant CEO is one who then surrounds themselves with the best individuals for the other key jobs. Asda have a void at a time when their competitors have clear, simple strategies. Asda have new appointments arriving but not until early 2025, by which point they will have been through the most important quarter of the year. Morrisons are focusing on the basics, availability & price. Asda appear to be focusing on nothing but trying everything. Price is off, availability is poor, stores are under staffed so they have relaunched Extra Special as Exceptional. Apparently it is a 'new, sophisticated brand, which aims to champion taste and elevate the supermarket’s premium tier offering.' I'd say this is a clear copy of M&S's The Collection range with it's look & feel. Is this the reason why Asda have been struggling? Of course not, it's because they aren't laser focused. As a Buyer I wanted to know what direction we were headed & what the plan was to get there. In other words the strategy & the tactics. I was fortunate enough to work at a time where the strategy was clear as were the tactics, I also worked through times where neither were clear! It doesn't feel like Asda have a clear strategy at the moment, they are trying to do everything & are also implementing major IT changes (guaranteed to disrupt the best of businesses). It feels like Asda are trying too hard as it just isn't coming easily. As one Supplier told The Grocer “Asda do seem somewhat in disarray. Buyers are really difficult to get hold of and NPD is slow and painful." Asda don't have a loyalty scheme that is working well at all & they are off the pace with pricing, having an Exceptional range won't cut the mustard. We are only just in August, the next two months are probably the quietest of the year, the calm before the storm. Asda need to sort themselves out before 1st October of their share will go back even further & their Golden Quarter will be a disaster. #theretailmind #groceryretail #asda #simple

🛍 John Lewis & Partners has forecast “significantly higher” profits this year as the retail giant’s turnaround strategy yields results. The partnership, which owns department stores as well as Waitrose supermarkets, said there had been a “marked improvement” in its performance. Losses before tax and exceptional items narrowed by 91pc to £5m in the six months to July. Revenues were up 2pc to hit £5.2bn, with Waitrose recording its tenth consecutive quarter of customer growth. Chief executive Nish Kankiwala said: “These results confirm that our transformation plan is working and we expect profits to grow significantly for the full year, a marked improvement from where we were two years ago.” Find out more 👇 https://lnkd.in/gdNHHZdd #Business | #Retail | #Shopping

Marks and Spencer: The Great British Retail Bear Awakens! Thanks, Nathalie Thomas for a good read 😊. Once, in hibernation, M&S is finally roaring back to life after a stagnant 2010s, much like a bear in springtime. After years of slumber, M&S's 2023 financials tell a riveting comeback story: revenue surged to £11.23bn, with profits hitting £482m. Their food segment, always a crowd-pleaser, contributed £6.52bn—nearly 58% of total revenue, proving that M&S food is the crown jewel from a modest £2bn in the ’90s. 💪 Today Fast forward to 2023, and food revenue stands at a remarkable £6.52bn. Competitors like Tesco, Sainsbury's, John Lewis Partnership, Ocado, Next, and Amazon are feeling the heat. Tesco’s revenue hit £64bn, Sainsbury’s at £30bn, John Lewis Partnership at £10.2bn, Next at £4.6bn, and Amazon UK at an estimated £23bn – but it's M&S’s unique selling point of high-quality food and fashion that’s striking gold. 🔍 How? In the food arena, Tesco, Waitrose, Ocado, and Sainsbury’s are M&S’s real rivals, while in the non-food sector, John Lewis, Next, and Amazon are the headline competitors. M&S has honed its strategy, divesting from non-core operations and doubling down on food, which evolved from just groceries to a premium, gourmet offering. This focus has solidified its market position and drawn customers back in droves. 📈 Trend Also notable in recent years, M&S has captured a significant portion of the premium food market, previously dominated by Waitrose. Industry analysts estimate M&S’s food market share at around 4.5%, up from 3.8% five years ago, while Waitrose has seen a slight decline from 5.2% to 4.8%. Moreover, M&S's turnaround strategy is rooted in significant operational changes. The retailer has been closing larger, older stores in less desirable locations and opening newer, more strategically located ones. With only a quarter of the estate renewed, the potential for continued growth is substantial. 🚧 Not there yet However international diversification and strategic partnerships account for only 11%  i.e. $1.23bn and some way to go on the Digital Skills Gap and integration Issue, with competitors continuously innovating, M&S needs to sustain its digital transformation efforts to remain competitive. 🤔❓The Big question Can M&S keep striking gold? If these numbers and strategic moves are any sign, the household British brand is ready to feast again. Here’s to the bear that woke up and decided to lead the pack finally with a growing cash flow to invest in the business and hopefully in a sustainable manner too. (Sources: Marks and Spencer Annual Reports 1990-2023, Kantar, Grocery Gazette, Financial Times, NielsenIQ)

I hope Allan’s got a brolly ☂️ It’s not raining at Asda 🌧️ Sadly, it’s pouring ☔️ Asda faces concerns over its financial stability due to a £900 million repayment to Walmart by 2028, including £500 million for Walmart’s stake and £400 million in interest. Fitch Ratings warns this may require a major refinancing. Since TDR Capital and the Issa brothers acquired Asda in a £6.8 billion deal in 2021, its market share has dropped from 14.8% to 12.5%. Cost-cutting measures have drawn criticism, and Fitch has downgraded earnings by £185 million. Allan Leighton, the new chairman, plans to reverse sales declines by focusing on price competitiveness and stock availability, though the required £1 billion investment is uncertain. While Asda recently refinanced £3.2 billion, easing immediate pressures, higher interest costs remain a challenge. Fitch suggests a full refinancing may be needed by 2027, despite Asda’s efforts to reduce leverage and improve cash flow. Asda debt pile prompts fears over financial stability | Isabella Fish | The Times https://lnkd.in/evSYxXCh #TheCPGGeek ###FMCG #ConsumerGoods #RethinkRetailTopExpert #NRFRetailVoice RETHINK Retail #RethinkRetail National Retail Federation #NRF

⬇ Not had time to catch up on recent retail news? We've got you covered with a summary of this week's top stories: Asda and Morrisons kick off 2025 with price war. The Big Jan Price Drop will see reductions of an average of 26% on products including in-store and online. 👀 Convenience retailers lost thousands of pounds worth of sales over Christmas following logistical issues at AB InBev-owned keg supplier PerfectDraft UK. 📉 Müller takes £65m hit to profits from Milk & More sale in otherwise ‘strong’ year.💪 Holland & Barrett and Ocado Retail have launched a new ‘shop within a shop’ partnership. 📃 Poundland & Dealz is selling yet more products for £1 or less as it doubles down further on value. The variety discounter has increased the number of products costing £1 or less from about 1,500 to almost 2,400. 📈 #latestnews #newstoday #podtalent #supplychain #technology #sustainability #productivity #recruitment #business #london

📰 BIG NEWS FOR UK RETAIL🗞️ Retail Royalty Allan Leighton joined Asda, from Mars in 1992 as Marketing Director and became CEO in 1996. He led a major turnaround, taking the company from financial struggles to success, culminating in its £6.7 billion sale to Walmart in 1999. After leaving Asda in 2000, Leighton pursued a portfolio career, holding non-executive roles, including The Co-op, Royal Mail, BrewDog, Dyson, BSkyB, Scottish Power. Today Allan’s return to Asda as Executive Chairman was announced, succeeding Stuart Rose, at a time when the company faced significant challenges. Asda has been struggling with declining sales and market share, dropping to 12.6% from 13.7% the previous year. Major operational issues, such as payroll glitches and IT system transitions, have disrupted store operations and employee satisfaction. Leadership instability has added to the uncertainty, following the departure of CEO Mohsin Issa. Financial pressures, including a £3.8 billion debt burden from its 2021 acquisition, have limited the company’s ability to compete effectively, particularly against discount rivals like Aldi and Lidl. Moreover, regulatory and economic pressures, including rising National Insurance contributions and an increased living wage, are expected to add substantial costs. Leighton’s leadership is seen as critical to navigating these challenges and revitalising the company. I sincerely hope that Allan succeeds in restoring Asda to its rightful position as a vibrant and innovative leader among UK grocers. Historically, Asda set itself apart with initiatives such as the introduction of George clothing, its diverse own-brand product range, cheerful and distinctive branding, and memorable seasonal campaigns. These initiatives not only defined its identity but also resonated with customers, my go-to as a student. #TheCPGGeek #IBMRetail #IBMConsumer #FMCG #ConsumerGoods #Retail Proud to be a #RethinkRetailTopExpert - RETHINK Retail #RethinkRetail #NRFRetailVoice - National Retail Federation #NRF #Asda