UK retailer Asda is planning to introduce a new operating model for its commercial functions at its office in Leeds.
The new model comprises eight integrated business units aligned to specific categories, led by a business unit director, who will assume full responsibility for sales and profitability in his or her area.
Within each unit, there will be dedicated teams responsible for buying, ranging and pricing, Asda noted.
The new model will replace the current structure, wherein these responsibilities are divided across multiple functions.
The move is part of the company’s ongoing transformation, aimed at ensuring the implementation of structures, technology and people skills, to support its long-term growth ambition.
‘Growth Ambitions’
Kris Comerford, chief commercial officer of Asda, 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.”
As part of the new operating model, Asda will invest in 36 new positions, including an additional 28 buying roles, to strengthen capacity and capability in this area.
The new model will also result in approximately 37 redundancies, predominantly from the category-planning, modular-planning and supply functions, Asda added.
Last month, the British supermarket group reported stronger like-for-like sales in the second quarter, driven by higher demand for cheaper alternatives to branded grocery products within a cost-of-living crisis.
