Asda's co-owner, Mohsin Issa, has made the decision to step back from his operational duties at the supermarket, allowing him to concentrate on his role as CEO of EG Group, a company that oversees petrol stations and convenience stores across Europe, the US, and Australia. With a permanent chief executive yet to be appointed, Issa's move has led Asda Chairman Lord Rose of Monewden, alongside Rob Hattrell of TDR Capital, to assume responsibilities at the UK supermarket, where Issa remains a non-executive director and co-owner with a 22.5% stake.
The timing of Issa's decision coincides with a challenging period for Asda, as the retailer has experienced a 6% decline in sales over the past 12 weeks, resulting in a decrease in market share to 12.6% compared to 13.7% a year ago. Competitors such as Tesco, Sainsbury's, and Morrisons have made market share gains, placing additional pressure on Asda's leadership team. The move follows public comments from Lord Rose expressing dissatisfaction over Asda's decreasing market presence and emphasizing the need for Issa to prioritize his responsibilities at EG Group, especially in light of Zuber Issa's recent sale of his Asda stake to TDR Capital.
Acknowledging Mohsin Issa's past contributions, Lord Rose highlighted Issa's role in the successful launch of Asda's convenience store initiative and the rollout of a loyalty app that now boasts over six million users. As Issa prepares to take on the sole CEO position at EG Group following his brother Zuber's exit next month, Asda faces the challenge of addressing its sales decline and market competition under new leadership arrangements.