Asda’s Chief Financial Officer John Fallon has resigned less than a year after he was promoted to the role by the grocer’s new owners.
A spokesperson for the UK’s third-largest grocer said he had decided to leave the business to “take on new challenges”.
Fallon will be replaced by Michael Gleeson, who last month stepped down from the same role at Morrisons just months after it was acquired by CD&R. He will join Asda next year.
Gleeson started working at Morrisons in 2014 as Group Financial Controller. In 2015 he became Financial Director before taking up the post of Trading Director of Ambient, Frozen, Dairy, Fuel and Services. He then joined its Board in February 2020 as CFO.
Prior to joining Morrisons, Gleeson worked for Tesco in several senior finance roles including Group Financial Planning and Analysis Director and CFO of Tesco.com.
In the period until Gleeson joins Asda, Steven Nuttall, VP of Commercial Finance, will take on some extra responsibility in the day-to-day running of the retailer’s finance function.
Fallon’s departure is the latest in a raft of senior exits from Asda since it was purchased in February 2021 by brothers Mohsin and Zuber Issa and private equity firm TDR Capital in a £6.8bn deal. It has operated without an official CEO since Roger Burnley abruptly left the business in August last year.
Mohsin Issa commented: “I am delighted that we are able to announce that Michael Gleeson will be joining us as our new Chief Financial Officer. Michael brings a wealth of experience to this role, and we are looking forward to welcoming him next year.”
Alongside its annual results last month, Asda stated that it was making progress towards its target of regaining its status as the UK’s second-largest grocery retailer. However, recent industry data from Kantar has shown Asda underperforming Tesco and the current number two player Sainsbury’s.
NAM Implications:
- Given the new appointment, combined with the Asda debt…
- …anticipate extra emphasis on financial performance.
- Meanwhile, the new CFO’s experience of working with Morrisons and Tesco…
- …should help Asda optimise its relative competitive appeal vs the mults.
