Asda co-owner Mohsen Issa is stepping down from his role in the day-to-day running of the UK’s third-largest supermarket, despite the fact that a permanent chief executive has yet to be appointed.
The move allows Issa to focus on his role as CEO of EG Group, which operates petrol stations and retail stores across Europe, the United States and Australia.
In his absence, Asda chairman Lord Rose of Monumenton, a former chief executive of Marks & Spencer, will assume Issa’s responsibilities, working alongside Rob Hattrell, a partner at TDR Capital – Asda’s largest shareholder – and a director of 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 difficult time for Asda, which has seen sales fall by 6% over the past 12 weeks, pushing its market share to 12.6%, compared with 13.7% a year ago. Rivals Tesco, Sainsbury’s and Morrisons have all made gains, adding to the pressure on Asda’s leadership.
Issa’s decision to step back comes after calls from Lord Rose, who has publicly expressed his disappointment at Asda’s shrinking market share and urged Issa to prioritise his role at EG Group. Issa’s brother, Zuber, who previously owned 22.5% of Asda, sold his stake to TDR Capital earlier this year to focus on other business ventures.
Lord Rose expressed his gratitude for Mohsen Issa’s contributions, particularly in launching the Asda convenience store initiative and launching the loyalty app, which is now used by more than six million customers. Issa is set to become sole chief executive of AG when his brother steps down next month, following the completion of the sale of AG’s remaining UK stores.