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Asda replaces CEO with Walmart's China chief Asda replaces CEO with Walmart's China chief
(about 5 hours later)
Asda has replaced its chief executive, Andy Clarke, in an attempt to revive the supermarket chain after a long run of falling sales amid intense competition between food retailers. Asda has replaced its chief executive in an attempt to reverse a long run of falling sales at the supermarket amid intense competition between food retailers.
Walmart, Asda’s US owner, said Clarke’s replacement would be Sean Clarke, a former Asda employee who most recently ran Walmart’s Chinese business. Walmart, Asda’s US owner, said Andy Clarke will be replaced by Sean Clarke, a former Asda employee who most recently ran Walmart’s Chinese business.
Andy Clarke has worked for Asda for more than 20 years and has run the business since 2010. He will work at Asda until the end of July and act as an adviser to Britain’s third-biggest supermarket until the end of 2016. Andy Clarke has worked for Asda for more than 20 years and has run the business since 2010. He will work at Asda until the end of July and act as an adviser to Britain’s third-biggest supermarket until the end of the year.
Asda has been the main casualty of the supermarket price war as customers defect to rivals such as the German discounters Aldi and Lidl. Walmart said last month that price cuts had failed to stop sales falling for the seventh quarterly period in a row as shoppers opted to shop in rivals’ smaller shops instead of Asda’s large stores.Asda has been the main casualty of the supermarket price war as customers defect to rivals such as the German discounters Aldi and Lidl. Walmart said last month that price cuts had failed to stop sales falling for the seventh quarterly period in a row as shoppers opted to shop in rivals’ smaller shops instead of Asda’s large stores.
Andy Clarke launched a plan called “project renewal” to revive the business in October, including cutting prices, refurbishing big stores, scrapping products and shelving expansion plans. Asda announced 750 job cuts in stores and its head office in March and said it would close staff canteens to cut costs.Andy Clarke launched a plan called “project renewal” to revive the business in October, including cutting prices, refurbishing big stores, scrapping products and shelving expansion plans. Asda announced 750 job cuts in stores and its head office in March and said it would close staff canteens to cut costs.
Asda also opted out of the pre-Christmas Black Friday discount bonanza to protect profit margins and hired the TV chef James Martin to appear in advertisements.Asda also opted out of the pre-Christmas Black Friday discount bonanza to protect profit margins and hired the TV chef James Martin to appear in advertisements.
Pressure grew on Clarke as sales failed to show a turnaround from the worst quarterly sales fall for the period over Christmas – a performance he said was worse than expected. The competition watchdog also criticised Asda in April for offering deals that could mislead shoppers. Pressure grew on Clarke as trading failed to show a turnaround from a worst-ever quarterly sales fall, recorded during the period over Christmas. The competition watchdog also criticised Asda in April for offering deals that could mislead shoppers.
Asda recruited Roger Burnley, Sainsbury’s operations head, last October and some analysts expected the former Asda man to replace Clarke once his year-long notice period from Sainsbury’s was over. Burnley will become deputy chief executive of Asda when he arrives in October.Asda recruited Roger Burnley, Sainsbury’s operations head, last October and some analysts expected the former Asda man to replace Clarke once his year-long notice period from Sainsbury’s was over. Burnley will become deputy chief executive of Asda when he arrives in October.
Walmart said: “Andy Clarke has decided the timing is right to step aside from his role with the company. Sean’s leadership will allow Asda to build upon the momentum of project renewal and reposition the business in a very competitive market place.”Walmart said: “Andy Clarke has decided the timing is right to step aside from his role with the company. Sean’s leadership will allow Asda to build upon the momentum of project renewal and reposition the business in a very competitive market place.”
Sean Clarke started his retail career at Asda in 1996 and worked for Walmart in Japan and Canada before running the Chinese operation of America’s biggest retailer. He will take over at Asda on 11 July.Sean Clarke started his retail career at Asda in 1996 and worked for Walmart in Japan and Canada before running the Chinese operation of America’s biggest retailer. He will take over at Asda on 11 July.
He said: “Rejoining Asda at such a critical point in the development of the UK retail market is both a challenge and a privilege. After spending the last 15 years in Walmart’s global retail markets, I’m looking forward to returning to the business that got me hooked on grocery retail.”He said: “Rejoining Asda at such a critical point in the development of the UK retail market is both a challenge and a privilege. After spending the last 15 years in Walmart’s global retail markets, I’m looking forward to returning to the business that got me hooked on grocery retail.”