Former Asda boss Andy Clarke talks retail transformation
Retail could be on the verge of running out of inspiring ‘from the shop floor to the boardroom’ stories as technology and digital strategies transform the space.
That’s the view of Andy Clarke, who served as Asda CEO from 2010 to 2016, until being replaced by Sean Clarke (no relation), the head of parent company Walmart’s operations in China.
The former began his career at Fine Fare, before joining Morrisons. In the early 90s, Clarke took over Asda's flagship store in Edinburgh and had increasing responsibility from there.
In 2000, he joined Matalan as Chief Operating Officer, and then worked at McKinsey & Company and Iceland. He returned to Asda in 2005 and became the Chief Operating Officer.
Speaking at a retailTRUST event this week, Clarke, who these days holds the position of Chairman at operational improvement specialist Newton, commented: “I’m a late learner in terms of how technology shapes retail and the last six months have shown us just how much that is the case.”
He continued: “It’s harder now to start on the shop floor at 16 and end up running a big grocer, than it was 30 years ago. There are more hurdles to jump and more boots to climb through than there used to be.”
Aldi, he added, are good at taking people from university, throwing them in at the deep end and producing great managers. “I would like to see more of that. There was a tremendous portfolio of leaders that came out of Asda, starting with Archie Norman back in the 90s.”
The DNA of a successful leader has changed, and some of that has been driven by technology. “30 years ago the focus was slightly different than it is now. It has been refreshed.”
“I’m not saying it’s a bad thing, everything has changed. Leaders have had to adapt to transformational change driven by new technologies and also discounters and the online boom.”
What lies ahead?
Clarke is predicting an exciting next 10 years, what with Walmart selling Asda and the grocery giant taking on a very different ownership structure and way of working. “Innovation will accelerate in order for retailers to maintain and gain market share, and online will keep growing,” he said.
In terms of the latter, the battle ground will be fulfilment costs. “You’ve got Amazon Prime offering free delivery, Tesco trying it out with its Clubcard members.”
“Looking back, Click and Collect should have been the way forward when I started out. Someone has to pay for fulfilment, and it’s either the customer or shareholder.”
“I really hope the customer experience remains strong in stores. Price will be hugely important over the next few years as we recover from the coronavirus pandemic,” Clarke added.
Ultimately, times might be tough for many retailers right now, but the Brits are, to quote Napoleon, a nation of shopkeepers. “The response to the coronavirus has been incredible. There is a changing shape as to how people shop with retailers, but it is still an exciting sector to be involved in,” Clarke stated.
And whilst technology has a key role to play, people matter more than ever. “It doesn’t matter what transformation happens, it always comes back to people. You must have employees onboard when driving transformational change,” he concluded.
