Mohsin Issa, co-owner of Asda, steps back from his operational role to concentrate on EG Group.
- Lord Rose temporarily assumes responsibilities at Asda, collaborating with Rob Hattrell of TDR Capital.
- Issa retains a 22.5% stake in Asda and remains a non-executive director.
- Asda faces a 6% sales decline, reducing its market share amid competitive pressure.
- Issa’s shift follows Lord Rose’s call for focus on his EG Group role.
Mohsin Issa, known for his strategic role at Asda, is redirecting his focus towards EG Group, where he is set to become the sole CEO. This decision marks a significant shift in leadership dynamics at Asda, where Issa will maintain his position as a non-executive director, managing his 22.5% ownership stake. His strategic pivot occurs as Asda navigates a challenging market environment, characterised by a 6% decline in recent sales.
In response to Issa’s departure from daily duties, Lord Rose, the Chairman of Asda, will take over these responsibilities temporarily. Lord Rose, formerly the CEO of Marks & Spencer, brings substantial retail expertise, ensuring continuity in leadership. He will work closely with Rob Hattrell, representing TDR Capital, who is a pivotal figure in guiding Asda’s strategic direction.
Issa’s decision comes amidst a period where Asda has seen its market share decrease to 12.6%, down from 13.7% a year prior. Competitors such as Tesco, Sainsbury’s, and Morrisons have successfully capitalised on Asda’s challenges, thereby coaxing the company to reassess its business strategies and market positioning.
A call from Lord Rose, prompted by his disappointment in Asda’s shrinking market footprint, appears to have inspired Issa’s decision to prioritise the EG Group operations. This move is perceived as essential for strengthening the EG Group as they prepare for Issa’s brother, Zuber’s, exit from the co-CEO role.
Despite stepping back, Issa’s contributions to the roll-out of Asda’s convenience stores and the successful launch of a loyalty app, embraced by over six million customers, have been acknowledged by Lord Rose. Issa’s leadership has been crucial in these innovations, aiming to enhance customer engagement and extend market reach.
Mohsin Issa’s strategic withdrawal from Asda’s operational helm allows for a refocused leadership approach at EG Group, positioning both entities for future growth.
