Mohsin Issa, co-owner of Asda, is stepping back from daily operations to prioritize his role at EG Group amidst a period of declining market share for the supermarket chain.
- Lord Rose of Monewden will temporarily assume Issa’s responsibilities at Asda, working closely with Rob Hattrell from TDR Capital.
- Asda has experienced a significant decrease in sales over the past 12 weeks, with a market share fall from 13.7% to 12.6%.
- Issa’s brother, Zuber, has sold his stake in Asda to focus on other business pursuits, while Issa himself will soon become the sole CEO of EG Group.
- Lord Rose praised Issa for his contributions to Asda’s recent initiatives, including the convenience store rollout and a loyalty app adoption.
Mohsin Issa has decided to step back from his daily responsibilities at Asda to concentrate on his role as CEO of EG Group, a company that operates petrol stations and convenience stores across various regions, including Europe, the US, and Australia. Issa will continue as a non-executive director and maintain his 22.5% ownership in Asda.
In his temporary absence, Lord Rose of Monewden, who formerly served as the CEO of Marks & Spencer, will take over Issa’s duties. He will be collaborating with Rob Hattrell from TDR Capital, the main stakeholder of Asda. This strategic move comes in response to significant challenges faced by Asda, which includes a 6% drop in sales over the last quarter, resulting in a reduced market share from 13.7% to 12.6%. This decline has been occurring as competitors like Tesco, Sainsbury’s, and Morrisons are gaining traction, thereby intensifying the pressure on Asda’s management.
This decision by Issa arose after public calls from Lord Rose, who expressed disappointment with Asda’s shrinking market presence and suggested that Issa should focus more on his commitments at EG Group. Further changes in ownership and management have taken place as Issa’s brother, Zuber, has divested his 22.5% stake in Asda to TDR Capital, choosing to pursue other business opportunities.
Lord Rose acknowledged Issa’s efforts, particularly with the introduction of Asda’s convenience store strategy and the implementation of a loyalty app that has garnered over six million users. These initiatives are seen as valuable contributions during Issa’s tenure.
Looking ahead, Issa is set to become the sole CEO of EG Group after concluding a deal involving the sale of EG Group’s remaining UK forecourts. This transition marks a significant shift in leadership and strategy for EG Group, potentially impacting its market operations.
Mohsin Issa’s strategic move to focus on EG Group highlights the evolving business dynamics at Asda during challenging market conditions.
