Asda co-owner Mohsin Issa steps back as Lord Rose takes temporary charge

Mohsin Issa Steps Back From Asda Management Role

This decision enables Issa to concentrate on his role as CEO of EG Group, the company that runs gas stations and convenience stores in Europe, the United States, and Australia.

While he is away, Asda Chairman Lord Rose of Monewden, who previously served as the CEO of Marks & Spencer, will assume Issa’s duties. He will collaborate with Rob Hattrell, a partner at TDR Capital, which is the majority stakeholder in Asda, as well as a director on the supermarket's board. Issa will continue in his role as a non-executive director and co-owner of Asda, maintaining a 22.5% ownership of the business.

The choice arrives at a tough moment for Asda, as the company has experienced a 6% decrease in sales over the last three months, reducing its market share to 12.6%, down from 13.7% the previous year. Competitors like Tesco, Sainsbury's, and Morrisons have seen improvements, increasing the strain on Asda's management.

Issa has chosen to take a step back after Lord Rose openly voiced his concerns about Asda's declining market share, encouraging Issa to concentrate more on his responsibilities at EG Group. Meanwhile, his brother, Zuber, who used to have a 22.5% ownership in Asda, sold his share to TDR Capital earlier this year to devote more time to his other business interests.

Lord Rose thanked Mohsin Issa for his valuable input, especially in starting Asda's convenience store program and introducing a loyalty app that has gained more than six million users. Issa is expected to take over as the sole CEO of EG Group next month, following his brother's departure from the position, after finalizing the sale of EG's remaining petrol stations in the UK.

Jamie is an experienced business journalist and Senior Reporter for Business Matters, boasting more than ten years of expertise in covering small and medium-sized enterprises (SMEs) in the UK. With a degree in Business Administration, Jamie is dedicated to staying updated on the latest trends by attending industry conferences and workshops. Outside of reporting on new business developments, Jamie enjoys mentoring aspiring journalists and entrepreneurs, using their extensive knowledge to motivate and guide the future leaders of the business world.