‘Protecting jobs will be Asda’s priority’

RETAIL: The former chief executive of Asda said protecting jobs will be at the “top of the minds” of its management team as the company awaits a decision on its proposed merger with rival Sainsbury’s.

Andy Clarke admitted he did feel some sadness that the retailer was potentially about to merge.

THE former chief executive of Asda has said protecting jobs will be at the “top of the minds” of its current management team as the Yorkshire-based company awaits a decision on its proposed merger with rival Sainsbury’s.

Andy Clarke admitted he did feel some sadness that the retailer which he led for six years was potentially about to merge, but said consolidation within the supermarket industry was “inevitable”.

Mr Clarke, who ran Leedsbased Asda between 2010 and 2016, was speaking as he was unveiled

as the new chairman of Leeds Bradford Airport.

Speaking exclusively to The Yorkshire Post, he said: “I spent 25 years in Asda and Walmart. I was there pre and post the acquisition [by Walmart].

“And having six years as the chief exec, I have a very strong sense of emotional connection to the Asda business.

“Whether it is right or wrong, I have got a sense of sadness that if the merger goes ahead and the business gets combined that it, of course, will not be what it was. But then, nothing stays the same.

“The most important thing is that the 140,000 people who work for the firm are protected.

“For me, I grew up with a lot of these people. There are a lot of very long-serving, very loyal colleagues who work for the Asda business.”

Mr Clarke said he was sure that for the management team and directors of both businesses, protecting jobs and services had got to be at the forefront of their minds.

The multi-billion pound merger deal between Sainsbury’s and Asda was announced in April last year and is currently being reviewed by the competition watchdog, with a decision due in the next few weeks.

If approved, the deal would create one of the UK’s leading grocery, general merchandise and

clothing retail groups, with combined revenues of £51bn.

Bosses at Asda and Sainsbury’s have both pledged to safeguard all roles and not to shut any stores, although many analysts have said closures may be required to meet competition rules.

Speaking about the supermarket industry, which is currently battling discount retailers

and online grocery retailers, Mr Clarke said: “It was inevitable there would be some sort of consolidation. Tesco and Booker were surely an example of that. Safeway was acquired by Morrisons years ago.

“The big question was always whether four could become three. And if this goes ahead, of course, four do become three, even if you do have two facias.

“The overall combined business will be run by one entity, I would have thought. I watch with interest as everybody else will be doing as to how it will unfold.”

When asked if it was surprising to him that it was his old firm and Sainsbury’s which were looking to join forces, Mr Clarke said he was more taken aback that it was not Asda leading the merger.

“There were a number of different scenarios,” he said. “I was not all was surprised.

“The Sainsbury’s business has gone through a reasonably pro-acquisitive strategy; Argos, of course, was the biggest investment before this potential merger. I think the surprise is that Asda is performing well and Sainsbury’s is not performing as well.

“But if this was going to happen, then somebody was obviously going to have to take the lead, and between the two boards it was Sainsbury’s which was the one that took this lead.”

I have a very strong sense of emotional connection to the Asda business. Former Asda chief executive Andy Clarke.