Asda has named former CEO Allan Leighton as its executive chairman, replacing Lord Stuart Rose, as it attempts to deliver a turnaround plan to halt its recent decline in sales.

In a statement, Asda confirmed that Rose will remain on the board “to ensure an orderly transition before stepping down”.

Leighton served as the grocer’s CEO from 1996 to 2001 and was chair of the Co-op for almost 10 years. At Asda, he is known for helping to turnaround the business in the late 1990s alongside current M&S chair Archie Norman.

Leighton said: “I am delighted to be returning to the business which has always been a special place for me.

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“The potential for Asda now is significant, and my focus will be to work with the leadership team to help make Asda special for our colleagues and millions of customers.

“Stuart has done an important job in helping to create a retailer with a presence in every format and I am delighted to be returning to the business which has always been a special place for me.”

It comes as the retailer continues it’s long-running search for a new CEO after Mohsin Issa officially stepped back from his executive leadership role earlier this year, to focus on his previously announced position as sole CEO of EG Group.

Having served as chair since 2021, Rose has since taken on the day-to-day responsibilities at the supermarket alongside TDR Capital – the private equity firm that owns majority share of Asda – partner and director of the grocer’s board, Rob Hattrell.

Rose added: “It has been a privilege to work alongside the Asda team over the past three years and to support the business through this period of transition.

“Asda will benefit enormously from Allan’s experience of leading the business and on behalf of the Board I am pleased to welcome him back. I look forward to continuing to support Asda as a shareholder and customer over the coming years.”