Head Of M&S Food Tipped To Be Next Asda Chief

Stuart Machin, the Managing Director of Marks & Spencer’s food business, has been singled out as a prime candidate to become the next Chief Executive at Asda.

Just weeks after being acquired by the Issa brothers and TDR Capital, the supermarket group announced on Friday that Roger Burnley will step down from the role next year. He will depart after the business has transitioned fully to new ownership and once a long-term successor is in place.

The Mail on Sunday quotes sources in the City as saying Machin and Morrisons’ second-in-command Trevor Strain will be ‘top of the list’ of candidates for the Asda job.

Machin joined M&S in April 2018 and was tasked with revitalising its underperforming food division. The retailer has since overhauled its pricing and product range, whilst establishing a joint venture with Ocado to develop its online grocery business.

Machin began his career at Sainsbury’s and rose to the role of Retail Operations Director during his 16-year spell with the supermarket. He then spent two years at Tesco, before moving to Asda where he was Operations Director for nearly three years. He then worked for various retailers, including Coles in Australia.

Meanwhile, Strain is already believed to be waiting in the wings for the top job at Morrisons should David Potts retire.

Sources told the newspaper that both men were “highly ambitious” and “exceptionally capable”.

One City source is quoted as saying: “The question is whether they would want to walk into a business owned by two relatively unknown brothers who only appeared on the scene recently.”

Another said: “The next chief executive will likely be keen to find out why Roger left before he signs up for the job, unless the money is just too good to refuse.”

Burnley stated that he was leaving Asda for “personal” reasons.

Last week, the Issa brothers and TDR Capital said they plan to run the supermarket “over the next five years and beyond”. Reports suggested that the 54-year-old Burnley had decided he was not the right person to lead the company during that period.

The new owners completed the purchase of a majority holding in Asda from Walmart in mid-February with clearance from the Competition and Markets Authority (CMA) the only final hurdle. Asda is currently operating independently from its buyers whilst the CMA conducts its investigation, with a ruling expected by 20 April.

NAM Implications:

• Whilst reasons for CEO changes can be of interest…
• The key will be the inevitable changes in management style…
• …as replacements make their mark.
• Usually a reflection of their previous role/s…
• …tempered by the culture of the new company.