Asda is making changes to support its long-term growth ambition. Credit: ASDA.

Supermarket chain Asda has revealed plans to launch a new operating model for its commercial function as part of an ongoing transformation programme.

The transformation aims to ensure the implementation of the right structures, technology and people skills to support its long-term growth ambition.

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Being implemented at its home office in Leeds, UK, the new model comprises eight integrated business units aligned to specific categories.

These units will be led by a business unit director, who will have full responsibility for sales and profitability in their area.

Each unit will have dedicated teams responsible for buying, ranging and pricing, unlike the current structure, where responsibilities are divided across multiple functions.

As part of the introduction, Asda is creating 36 new positions, including an extra 28 buying roles to provide additional capacity and capability in this area.

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Meanwhile, the change will result in approximately 37 redundancies, primarily from the category planning, modular planning and supply functions.

Asda said that the new model would be implemented with immediate effect.

Asda chief commercial officer Kris Comerford 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.”

Last month, Asda reported that its like-for-like sales for the second quarter of fiscal year 2023 increased by 9.6% compared to the same period in FY22.