In a significant restructuring move, Mohsin Issa, co-owner of Asda, is stepping back from daily operations to focus on his CEO role at EG Group.
- Lord Rose of Monewden, Asda Chairman and former CEO of Marks & Spencer, will temporarily take over Issa’s responsibilities.
- This decision comes amidst a challenging period for Asda, marked by a 6% drop in sales over the past 12 weeks.
- Asda’s market share has fallen to 12.6%, compared to 13.7% last year, under increased competition from Tesco, Sainsbury’s, and Morrisons.
- Mohsin Issa will remain a non-executive director and co-owner of Asda, maintaining his 22.5% stake in the company.
Mohsin Issa, co-owner of Asda, has decided to step back from daily operations to concentrate on his role as CEO of EG Group, an organisation that manages petrol stations and convenience stores across Europe, the US, and Australia. This strategic decision permits Issa to devote his attention to EG Group, particularly as he is set to become its sole CEO next month following his brother’s departure.
Taking over Issa’s duties on a temporary basis will be Lord Rose of Monewden, the current Asda Chairman with a significant background as the former CEO of Marks & Spencer. He will work closely with Rob Hattrell, a partner at TDR Capital, Asda’s majority stakeholder, ensuring the continuity of operations. Issa will still hold a 22.5% ownership stake in Asda and will continue to serve as a non-executive director.
The timing of this transition is particularly noteworthy as Asda navigates a challenging market environment. Over the past 12 weeks, Asda has reported a 6% decline in sales, reducing its market share from 13.7% a year ago to 12.6%. This decline occurs amid aggressive competition from other major supermarket chains like Tesco, Sainsbury’s, and Morrisons. The necessity for this leadership change echoes sentiments expressed by Lord Rose, who has publicly conveyed disappointment regarding Asda’s performance and emphasised a need for focused leadership.
This restructuring follows a similar move by Issa’s brother, Zuber, who sold his 22.5% stake in Asda to TDR Capital earlier in the year. Zuber Issa shifted his focus to other business ventures, further consolidating TDR Capital’s position within the company. Lord Rose has acknowledged Mohsin Issa’s contributions to Asda, particularly in launching the convenience store initiative and rolling out a loyalty app now actively used by over six million customers.
Lord Rose’s interim leadership is anticipated to stabilise Asda during this period of transition. He stated his appreciation for Issa’s efforts and his commitment to sustaining the progress made under Issa’s tenure as Asda continues to contend with its competitive landscape.
This strategic transition aims to stabilise Asda’s operations and address the pressing challenges in the retail market.
