Its highly regarded chief operating officer David Cheesewright will leave a hole at the grocer when he becomes Wal-Mart Canada’s president and chief executive in February.
Cheesewright has been instrumental to Asda’s turnaround since he returned to the UK grocer in 2005. He admitted that his least favourite moment was laying off a number of staff to streamline the business.
But it is Cheesewright’s retail nous that Asda could miss in the short term when he takes up his new role on February 1. Blue Oar Securities analyst Greg Lawless said: “This could be good news for both Tesco and Morrisons, because it potentially weakens Asda in the short term. We think Cheesewright was the retail brains behind Asda’s recovery over the past 18 months or so. It is good news that he gets to run his own business, but this may weaken Asda in the short term.”
An Asda spokesman said the grocer had no plans to replace Cheesewright “for the time being”. Lawless said that Asda would probably promote food trading director Darren Blackhurst to be the board trading director for non-food, in addition to his food trading responsibilities. The spokesman admitted that Cheesewright’s departure created an opportunity for members of the executive board to step up. Of course, there is also the possibility that the grocer could look externally to fill his boots in the new year.
The reality is that the loss of Cheesewright, who is a self-confessed fitness fanatic, is highly unlikely to have a tangible impact on Asda’s trading next year, but his retail acumen, drive and experience will be missed. According to Lawless, Cheesewright has driven the higher operating standards that have been witnessed on recent visits to Asda stores. Cheesewright was also the brains behind the grocer’s promotional stance on two for the price of£2, as well as the increase in premium and organic lines.
Overall, Asda has more than enough talent and momentum to cope with Cheesewright’s departure, but, as all the grocers face a more challenging year, Asda could have done without Cheesewright returning to Canada.
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