Asda co-owner Mohsin Issa steps back from running supermarket

Mohsin Issa, the co-owner of Asda, is stepping back from day-to-day running of the country’s third-largest supermarket chain even though a permanent chief executive has not yet been identified.
He will hand over his responsibilities to Lord Rose of Monewden, the chairman of Asda, to focus on his role as chief executive of EG Group, which operates filling stations and convenience stores in Europe, the US and Australia.
Lord Rose, a former boss of Marks & Spencer, will work with Rob Hattrell, a partner and head of digital at the chain’s co-owner TDR Capital, the private equity firm, and a director on Asda’s board. Mohsin remains a co-owner of Asda and a non-executive director.
Mohsin has been responsible for overseeing the grocer’s day-to-day operations as the board searches for a permanent chief executive.
He will become the sole chief executive of EG Group when his brother leaves the executive position at the end of next month, when the sale of its remaining UK forecourts is completed.
Issa said it was the right time for him to step back to concentrate on his role at EG Group.
The move comes at a time when Asda is experiencing a slowdown in sales and has lost market share to rivals including Tesco, Sainsbury’s and Morrisons. Data from the market researcher Kantar showed that sales fell 6 per cent in the 12 weeks to August 4, pushing down its market share to 12.6 per cent, down from 13.7 per cent in the same period last year.
Last month Lord Rose said in an interview that he was “embarrassed” by the supermarket’s declining market share and called on Mohsin to step back from running the retail chain.
Asda is 67.5 per cent-owned by TDR Capital, with Mohsin Issa, 53, holding 22.5 per cent. His brother, Zuber Issa, 52, sold his 22.5 per cent stake to TDR this year to focus on his other businesses.
Lord Rose said in response to Mohsin’s departure: “We respect Mohsin’s decision to move on from his role at Asda, where his work is complete, to be the sole chief executive of EG Group. We are very grateful to Mohsin for the role he has played in overseeing Asda, including launching into the growth market of convenience stores and introducing a loyalty app now used by more than six million customers.”
Asda was owned previously by Walmart, the American retail group. The Issa brothers and the private equity firm bought the chain for £6.8 billion in 2021. Walmart retains a 10 per cent holding.