Asda has announced a significant leadership change as co-owner Mohsin Issa steps back from his executive role to focus on his previously announced position as sole CEO of EG Group.
This decision marks a shift in the leadership structure of the UK’s third-largest supermarket chain.
Taking over Issa’s executive responsibilities are Stuart Rose, Asda’s chair, and Rob Hattrell, a partner at TDR Capital, the private equity company that holds a majority stake in Asda.
“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,” said Lord Rose.
“He has laid the foundations to deliver a world-class IT infrastructure, strengthening Asda for the long term. I look forward to continuing to benefit from his insight as a nonexecutive director on our board.”
This transition comes as Asda continues its search for a new CEO to lead the business in its next phase.
Issa’s decision to step back from Asda is motivated by his desire to concentrate on EG Group, the petrol station business he founded with his brother Zuber.
The move comes as Asda has faced increasing competition from rival supermarkets and has seen its market share decline.
Last month, leading data and analytics company GlobalData stated Asda’s position as the UK’s third-largest grocer was under severe threat from discount rival Aldi.
The company predicted that Aldi could match Asda’s market share as early as 2027 and potentially surpass it the following year.
Asda’s shareholder group, which includes TDR Capital and the Issa brothers, has invested £3.8bn ($5.01bn) in Asda over the past three years to strengthen the business.
This investment has enabled Asda to expand its store footprint, launch a successful loyalty app, and improve its IT infrastructure.
Despite Issa’s departure from his executive role, he will remain a nonexecutive director on the company’s board.
Asda’s leadership change is a significant development for the UK retail industry.
The company’s future success will depend on its ability to navigate the competitive landscape and deliver value to its customers.
“Asda co-owner steps down to focus on EG Group” was originally created and published by Retail Insight Network, a GlobalData owned brand.
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