Advisory Board

Testimonials

>> click here for latest news

Partners

Key Partners

Industry Poll

Which of the following new emerging markets do you think will show the fastest growth over the next 5 years?

Brazil
Eastern Europe
Egypt
India
Russia
Thailand
Vietnam

>> view results

Click here to view our BLOG

Knowledge Centre

Arc Worldwide, Leo Burnett Group report

Financial Times World Retailing Report

IBM The Performance Manager

WPP - Retailing in the Recession

Global Retail 250 Website Index Report

WGSN Berlin City Guide

A demandtec eBook: nextGEN of Merchandising & Marketing Customer Insights

IBM Smarter Consumer Report

WGSN Think Tank Consumer Forecast: Consumer Attitudes 2011

WGSN What’s In Store Visual Merchandising Analysis: VM Overview March 2010

Hall of Fame Biographies

Archie Norman

Asda

The origins of the Asda Group are to be found in the efforts of English dairy farmers to protect themselves from falling milk prices after World War I. The company - Associated Dairies - created a subsidiary called Asda Stores in 1965. Associated Dairies was highly profitable and the fledgling food-stores division was viewed originally as a niche operation.

However, the stores were an immediate and immense success. Associated had come up with a merchandising concept entirely new to the UK, and well-tailored to the working-class cities in which it chiefly operated. The company opened extremely large, rather spartan stores in abandoned warehouses or mills, offering to the public a limited selection of goods at the lowest possible prices. It was apparent by the early 1970s that the Asda Stores division would soon dwarf its parent.

With Asda's runaway success as a model, the established grocery chains began building similar superstores at out-of-town locations. But increased competition, some disastrous business errors and rising costs meant that, by October 1991, when Asda appointed Archie Norman, age 37 at the time, as chief executive, the company was in dire straits. Norman had been group finance director at Kingfisher. In November 1991 Asda completed a rights issue that raised £357 million and cut debt to £668 million, but Asda remained on the brink of collapse.

The new leadership at Asda quickly began a three-year turnaround programme. Prices were restored to the company's traditional 5-7% below the competition. Costs were slashed, including the elimination of 500 management positions, a move announced in May 1992. Asda’s stores bolstered their selections of fresh foods and clothing and the clothing lines were sold under the George brand, a ground-breaking tie-up with retail legend George Davies of Next fame. To improve the company balance sheet, Asda sold off additional peripheral businesses and sold some property and large stores to its competition. The company was also able to complete a second rights issue that raised an additional £347 million. By 1995 Asda had returned to the black. In late 1996 with the turnaround complete, Norman was named chairman – a role he would retain until 2000 - and Norman's deputy, Allan Leighton, became chief executive. Asda would later be taken over by Wal-Mart.

Norman became a Conservative MP in 1997 and was a shadow minister from 1999-2001. He returned to the backbenches and stood down at the May 2005 General Election. He now heads a private equity company called Aurigo Management.