Mohsin Issa, co-owner of Asda, steps back to focus on EG Group amid Asda’s market challenges.
- Asda faces a 6% drop in sales over the last 12 weeks, reducing its market share to 12.6%.
- Lord Rose temporarily takes charge of Asda’s operations during Issa’s absence.
- Zuber Issa sells his Asda stake to prioritize other business ventures.
- Mohsin Issa remains a non-executive director and co-owner of Asda.
Mohsin Issa, co-owner of Asda, has decided to step back from his operational role at the supermarket chain to concentrate on his responsibilities as Chief Executive Officer of the EG Group. This strategic move comes amidst a challenging period for Asda, which has experienced a 6% decline in sales over the past 12 weeks. Consequently, Asda’s market share has dropped to 12.6%, from 13.7% the previous year, while competitors such as Tesco, Sainsbury’s, and Morrisons have gained ground.
With Issa’s temporary withdrawal, Lord Rose of Monewden, who previously led Marks & Spencer, will assume Issa’s duties at Asda. He will work closely with Rob Hattrell, a partner at TDR Capital, Asda’s majority stakeholder, who also serves as a director on the supermarket’s board. Despite Issa’s reduced role, he will maintain his position as a non-executive director and retain his 22.5% stake in Asda.
This decision follows Lord Rose’s public expression of concern over Asda’s decreasing market share, urging Mohsin Issa to prioritise his position at the EG Group. The Issa brothers have restructured their business interests, with Zuber Issa having sold his 22.5% share in Asda earlier this year to focus on different ventures.
Lord Rose acknowledged Mohsin Issa’s contributions to Asda’s growth initiatives, particularly highlighting the launch of the convenience store model and the introduction of a loyalty app, which has acquired over six million users. Mohsin Issa is expected to become the sole CEO of EG Group following his brother’s departure next month, concurrent with the finalisation of a deal to sell EG’s remaining UK petrol stations.
Mohsin Issa’s strategic decision underscores a pivotal transition period for both Asda and the EG Group.
