Asda co-owner Mohsin Issa is stepping down from his role in the day-to-day running of Britain’s third-largest supermarket, despite the fact that a permanent CEO is yet to be appointed.
The move will allow Issa to focus on his role as CEO of EG Group, which operates gas stations and convenience stores in Europe, the US and Australia.
In his absence, Asda chairman Lord Rose of Monewden, a former chief executive of Marks & Spencer, will take over Issa’s responsibilities, along with Rob Hattrell, a partner at TDR Capital – Asda’s largest stakeholder – and a director on the supermarket’s board. Issa will remain a non-executive director and co-owner of Asda, with 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%, down from 13.7% a year ago. Rivals Tesco, Sainsbury’s and Morrisons have made gains, increasing pressure on Asda’s leadership.
Issa’s decision to step back follows calls from Lord Rose, who publicly expressed disappointment at Asda’s shrinking market share and urged Issa to prioritize 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 acknowledged Mohsin Issa’s contributions, particularly in the launch of Asda’s supermarket initiative and the rollout of a loyalty app now used by more than six million customers. Issa will become sole CEO of EG Group when his brother steps down from the role next month, following the completion of a deal to sell EG’s remaining UK petrol stations.