*

Leighton was CEO 1996 to 2001, sold business to Walmart ( WMT )

*

Succeeds Stuart Rose as chair

*

Rose said Asda has 'lost the plot'

*

Asda has been losing market share to rivals

(Adds detail paragraph 2, 4 to 6, TDR Capital comment paragraph

9)

By James Davey and Muvija M

LONDON, Nov 23 (Reuters) -

Struggling British supermarket Asda said on Saturday veteran

retailer Allan Leighton would return as executive chairman, more

than two decades after he served as CEO when he turned around

the business before selling it to Walmart ( WMT ).

Britain's third largest grocer, now majority owned by

private equity firm TDR Capital, has been losing market share to

rivals, including industry leader Tesco ( TSCDF ) and No. 2

Sainsbury's ( JSNSF ), according to

monthly data

.

Leighton will succeed fellow veteran Stuart Rose, who

has been chair since 2021 and in September assumed the executive

responsibilities of co-owner Mohsin Issa.

Earlier this month, Rose said Asda had

"slightly lost the plot"

, highlighting inadequate store standards, poor product

availability and prices not as sharp as they have been in the

past. But he said the business is fixable.

At the same time, Asda reported a 4.8% fall in third

quarter like-for-like sales and warned that measures in the new

Labour government's budget last month would cost the group 100

million pounds ($125 million).

Leighton served as Asda CEO from 1996 to 2001, driving a

turnaround with then chairman Archie Norman before the business

was sold to Walmart ( WMT ) for 6.7 billion pounds. Leighton also served

as president of Canadian retail group Loblaw ( LBLCF ) and chairman of

Britain's Co-op and the Royal Mail.

Asda said Rose will remain on the board to ensure an

orderly transition before stepping down.

"I am delighted to be returning to the business which

has always been a special place for me," Leighton said.

Gary Lindsay, managing partner of TDR Capital, said

Leighton's "experience and understanding of Asda will stand us

in good stead as he leads the business into the next stage of

its development".

Walmart ( WMT ) retains a 10% stake in Asda.

($1 = 0.7980 pounds)