Asda chairman Lord Rose has taken control of the struggling supermarket following Mohsin Issa’s formal departure as chief executive.
The retail veteran, who previously led Marks & Spencer and Ocado, will oversee the day-to-day operations at Asda, as announced by the company on Wednesday. Asda stated that Mr. Issa will remain a co-owner and serve as a non-executive director on the board.
However, Lord Rose indicated to The Telegraph last month that he would encourage Mr. Issa to refrain from intervening in operations.
Mr. Issa is now expected to concentrate on his role at the petrol station empire EG Group. Lord Rose commented, “We respect Mohsin’s decision to move on from his role at Asda, where his work is complete, to be the sole CEO of EG Group. He has laid the foundations for a world-class IT infrastructure, strengthening Asda for the long term.”
Lord Rose’s primary focus will be to address Asda’s declining sales, which he previously described as “embarrassing.” He mentioned to The Telegraph that he plans to take a more active role in the business.
The decision to replace Mr. Issa follows a prolonged search for a new chief executive, with the billionaire having led the company since 2021. Earlier this year, The Telegraph reported that Asda was offering a pay package of £8 million to £10 million to attract top-tier candidates. However, Mr. Issa’s ongoing involvement was seen as a barrier to finding a successor.
Lord Rose stated last month, “We need a full-time, fully experienced retail executive to come in.”
This leadership change comes amid industry data released on Wednesday, indicating that Asda’s sales continue to decline. According to NIQ Total Till figures, sales at Asda dropped 5.5% in the 12 weeks leading up to September 7 compared to the same period last year, with its market share falling from 13.1% to 11.8% over the past year.
