Stuart Rose, the former boss of Marks & Spencer and Topshop, is to take charge of running Asda as the struggling supermarket’s co-owner Mohsin Issa steps back from executive duties amid falling sales.
The company said Lord Rose, the chair of Asda, will lead the business alongside Rob Hattrell, another director on the supermarket’s board and a partner at its majority shareholder, TDR Capital, the private equity group.
Rose last month called on Issa to step back as he said he was “embarrassed” by Asda’s performance.
Issa will remain a co-owner of Asda and a non-executive on its board. He will become the chief executive of EG Group, the petrol forecourts operation where he and his brother Zuber Issa made their fortune.
The change comes as TDR finalises the buyout of Zuber’s 22.5% stake in Asda, leaving it the joint owner with Mohsin.
Reports earlier this year suggested there had been a rift between the brothers after the breakdown of Mohsin’s marriage, which was said to have “sent shockwaves” through the family. However, in March, Mohsin denied there had been an estrangement, saying the brothers “get on exceptionally well”.
Asda is searching for a chief executive after a tumultuous period at the top of the group, which was bought by the billionaire Issa brothers and TDR in a debt-fuelled £6.8bn deal in October 2020.
Industry insiders say Asda is struggling to hire an experienced chief executive to help stem its decline because of the presence of Mohsin Issa, who has been overseeing operations since the exit of the former chief executive Roger Burnley three years ago.
Meanwhile, figures released on Wednesday highlighted the supermarket chain’s continued loss of market share. The company was the only large grocer whose sales fell in the three months to 7 September, according to analysts at NIQ, with a 5.5% decline resulting its market share sliding 1.3 percentage points to 11.8%.
Rose said: “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 6 million customers.
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“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 non-executive director on our board.”
Mohsin said: “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, as well as our unwavering commitment to provide customers with uncompromising value.
“Given these achievements and the significant strategic steps we have taken, I have decided now is the right time for me to step back from my oversight role at Asda to focus on EG Group as sole chief executive.”
