Asda co-owner Mohsin Issa steps back as Lord Rose takes temporary charge --[Reported by Umva mag]

Asda co-owner Mohsin Issa steps back from daily operations to focus on his role at EG Group, as the supermarket struggles with falling market share and awaits a permanent chief executive. Read more: Asda co-owner Mohsin Issa steps back as Lord Rose takes temporary charge

Sep 19, 2024 - 19:27

Asda co-owner Mohsin Issa steps back as Lord Rose takes temporary charge --[Reported by Umva mag]

Asda’s co-owner, Mohsin Issa, is stepping away from his role in the day-to-day management of the UK’s third-largest supermarket, despite the fact that a permanent chief executive has yet to be appointed.

This move allows Issa to focus on his position as CEO of EG Group, which operates petrol stations and convenience stores across Europe, the US, and Australia.

In his absence, Asda Chairman Lord Rose of Monewden, formerly CEO of Marks & Spencer, will take over Issa’s responsibilities, working alongside Rob Hattrell, a partner at TDR Capital—Asda’s majority stakeholder—and a director on the supermarket’s board. Issa will remain a non-executive director and co-owner of Asda, holding a 22.5% stake in the company.

The decision comes at a challenging time for Asda, with the retailer seeing a 6% drop in sales over the past 12 weeks, pushing its market share down to 12.6%, compared to 13.7% a year ago. Rivals Tesco, Sainsbury’s, and Morrisons have made gains, adding pressure on Asda’s leadership.

Issa’s decision to step back follows calls from Lord Rose, who publicly expressed disappointment over Asda’s shrinking market share, urging Issa to prioritise his role at EG Group. Issa’s brother, Zuber, who previously co-owned 22.5% of Asda, sold his stake to TDR Capital earlier this year to focus on his other business ventures.

Lord Rose expressed gratitude for Mohsin Issa’s contributions, particularly in launching Asda’s convenience store initiative and the rollout of a loyalty app now used by over six million customers. Issa is set to become the sole CEO of EG Group when his brother steps down from the role next month, after the completion of a deal to sell EG’s remaining UK forecourts.

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