Judith McKenna, former Asda executive, expresses deep concern over the supermarket’s current trajectory post-acquisition.
- The acquisition by TDR Capital and the Issa brothers has not met expected improvements in Asda’s market standing.
- Asda’s IT transformation from its Walmart legacy system has faced significant challenges and operational glitches.
- Market share decline and massive debt continue to pose major challenges for Asda.
- Despite struggles, McKenna acknowledges the potential and determination within the Asda team.
Former Asda executive, Judith McKenna, has openly communicated her concerns regarding the current state of Asda following its acquisition by private equity firm TDR Capital and the Issa brothers. During the FT Live Future of Retail conference, McKenna described Asda as ‘clearly not where it should be’, indicating a heartfelt disappointment over the supermarket’s trajectory since its £6.8bn sale in 2021.
McKenna highlighted an initial optimism about the Issa brothers’ acquisition, lauding their ‘entrepreneurship’ and ‘ability to do something different in UK supermarket retailing’. Despite this potential, McKenna suggests that various ‘circumstances’, such as economic conditions and distractions, have hindered Asda’s progress towards its goals.
The past year has been notably turbulent for Asda, marked by a persistent decline in market share and significant financial burdens. One of the prominent challenges has been the grocer’s transition from its Walmart IT systems, a move plagued by technical glitches that have adversely affected both employee wages and customer orders. McKenna’s remarks emphasise the complexities involved in such technological transitions, acknowledging their difficulty: ‘It is way harder to get out of systems, than it is to get into them.’
Amid these operational challenges, McKenna also reflected on the intrinsic strengths of Asda as a business, praising its ‘good business and great colleagues’. Her sentiments are grounded in a recognition of Asda’s potential, coupled with a sincere hope for its recovery and future success, despite personal disappointment—a sentiment encapsulated in her admission that the situation ‘hurt my heart a little’.
Judith McKenna’s statements render a realistic picture of Asda’s current struggles while spotlighting the inherent resilience and capabilities within the organisation.
The future of Asda remains uncertain amid ongoing challenges, though optimism persists within its leadership.
