Walmart's Asda names a new chief executive

Walmart has replaced the chief executive of its struggling UK division for the second time in 18 months, tapping chief operating officer Roger Burnley to try to reinvigorate Asda as the chain cedes ground to discounters Aldi and Lidl.

The move will see Sean Clarke, a longtime Walmart executive who was previously in charge of the group’s business in China, leave Asda at the end of the year. Walmart said he would “remain engaged” with the company, and Mr Clarke said he was “looking forward to taking some time out”.

Mr Burnley returned to Asda last year, after a decade-long spell at rival J Sainsbury. Between 1996 and 2002 he was part of the team responsible for integrating Asda into Walmart, after the US group bought the UK business in 1999.

As chief executive he will be charged with finding a sustainable niche for a supermarket that was once recognised as Britain’s cheapest food retailer, only to lose that crown as the German discount chains advanced on the sector in the aftermath of the financial crisis.

Revenues fell 3.2 per cent to £21.7bn last year, foreshadowing a predicament that may yet befall Walmart in its US homeland, where Ald and Lidl have announced plans to open in hundreds of locations over the next five years.

Mr Burnley said:

“Asda is a great business and we’ve started to realise its potential again. Sean’s focus on serving customers and simplifying the business has established a firm foundation on which we can build.”

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