Asda introduces new commercial operating model

Asda has briefed colleagues on plans to introduce a new operating model for its commercial function at its home office in Leeds. The change is part of Asda’s ongoing transformation to ensure it has the right structures, technology and people skills in place to support its long-term ambition to become the UK’s second-largest grocery retailer. The new model comprises eight integrated business units aligned to specific categories and led by a business unit director who has full responsibility for sales and profitability in their area. Within each unit there will be dedicated teams responsible for buying, ranging and pricing, replacing the current structure where these responsibilities are split across multiple functions. Asda said that embedding these responsibilities into category-specific business units will allow its teams to “act with greater agility and respond better to customer needs, as decision making becomes faster and better informed by insight and data”. As part of the new operating model, Asda is investing in 36 new positions, including an extra 28 buying roles to give it additional capacity and capability in this area. The change will also result in circa 37 redundancies, predominantly from the category planning, modular planning and supply functions. The new commercial operating model is being introduced with immediate effect. Kris Comerford, Asda’s chief commercial officer, said: “We are introducing a new commercial structure to ensure that our teams are in the best position to support Asda’s long-term growth ambitions, which include significant expansion in the convenience and foodservice markets. “The move to a more agile way of working, with simpler processes and extra investment in key areas like buying, will help strengthen our relationships with suppliers and ultimately deliver better outcomes for our customers too.”