Leighton served as Asda CEO between 1996 and 2001, before onto senior roles with Canadian food retail business Loblaw Companies and UK retailer Co-op.
Current chair Lord Rose, who was been in the role since 2021, will remain on the board for a period in order to assist with the transition before stepping down.
This is just the latest change at Asda in what has been a tumultuous year, with Zuber Issa selling his shares to majority owner TDR Capital and Mohsin Issa stepping back from his leadership role.
Meanwhile, it was announced earlier this month that nearly 500 head office employees were being made redundant.
However, Leighton believes that Asda retains significant potential moving forward.
“[Lord Rose] has done an important job in helping to create a retailer with a presence in every format and I am delighted to be returning to the business which has always been a special place for me,” Leighton said.
“The potential for Asda now is significant, and my focus will be to work with the leadership team to help make Asda special for our colleagues and millions of customers.”
Meanwhile, Rose said it had been a privilege to work alongside the Asda team over the past three years and support the business through a “period of transition”.
“Asda will benefit enormously from Allan’s experience of leading the business and on behalf of the Board I am pleased to welcome him back,” he added.
“I look forward to continuing to support Asda as a shareholder and customer over the coming years.”
Finally, TDR managing partner Gary Lindsay praised Rose for positioning Asda in a way that would enable “long-term success” before welcoming the return of Leighton.
“Asda today has both a leading superstore estate and a strong position in every format, and Allan’s experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development,” Lindsay concluded.