Asda chairman Lord Rose has taken control of the struggling supermarket after Mohsin Issa formally stepped down as chief executive.
The retail veteran, who previously headed up Marks & Spencer and Ocado, will assume the day-to-day running at Asda, the company announced on Wednesday.
Asda said Mr Issa would remain a co-owner of the business and a non-executive of the board.
However, Lord Rose told The Telegraph last month that he would encourage Mr Issa not to intervene in operations.
The departing chief is now expected to focus on his role running petrol station empire EG Group.
Lord Rose said: “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 to deliver a world-class IT infrastructure, strengthening Asda for the long term.”
Lord Rose’s priority will be halting Asda’s sales slump, as he said previously that he has been “embarrassed” by the supermarket’s recent decline.
At the time of his interview, Lord Rose told The Telegraph that he was planning to take an increasingly active role in the business.
His decision to replace Mr Issa comes after a long-standing search for a new chief executive, with the billionaire having run the business since 2021. Earlier this year, The Telegraph revealed that Asda was touting a pay package of between £8m and £10m for the position in an effort to lure top-end candidates.
However, Mr Issa’s continued involvement in Asda was believed to be an obstacle in finding a replacement.
Lord Rose said last month: “We need a full-time, fully experienced retail executive to come in.”
The announcement of the change at the helm comes after industry data released on Wednesday suggested Asda sales were still in freefall.
According to NIQ Total Till figures, sales at Asda were down 5.5pc in the 12 weeks to September 7 compared to the same period a year earlier.
Its market share has dipped from 13.1pc to 11.8pc over the past year.
