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Asda Stores Ltd has announced that Mohsin Issa will step down from his executive leadership role to concentrate on his position as chief executive of EG Group. This change comes amid mounting pressure from Asda chair Stuart Rose, who had been advocating for Issa's departure from his executive role.
The decision follows a period of challenges for Asda, which has experienced a decline in its share of the British supermarket sector. Rose has expressed embarrassment over the chain's recent performance, noting that Asda's like-for-like sales fell by 5.3% in the second quarter. The situation has been further complicated by Mohsin Issa's brother, Zuber Issa, deciding to exit his stake in the company, which has done little to boost optimism about Asda's prospects.
Mohsin Issa will retain his position as a co-owner of Asda and continue as a non-executive member on the board. In his new role, Rose will assume the responsibilities previously held by Issa. Reflecting on his tenure, Issa expressed pride in the achievements made during his time at Asda. He highlighted the progress the company has made over the past three years and emphasized the commitment to delivering value to customers. "I am very proud of the highly experienced team we have built, and the significant progress made to build a bigger and better Asda over the last three years," Issa stated. He also mentioned that the time was right for him to step back from his oversight role at Asda to focus on EG Group as its sole chief executive.
Rose acknowledged Issa's decision and expressed gratitude for his contributions to Asda. "We respect Mohsin’s decision to move on from his role at Asda," Rose said. He highlighted Issa's role in expanding Asda into the convenience store market and the introduction of a loyalty app now utilized by over six million customers.
Issa's departure signifies a significant shift in Asda's leadership at a time when the company is facing increasing competition and internal challenges. As Asda navigates this transition, the focus will likely be on stabilizing performance and addressing the issues that have impacted its market share.
