Stuart Rose, former boss of Marks & Spencer and Topshop will take over Asda when the struggling supermarket’s Co-Owner Mohsin Issa steps down from executive duties due to falling sales.
Lord Rose, chair of asda will be leading the company alongside Rob Hattrell. Hattrell is a director on the board and partner in TDR Capital. TDR Capital is the majority shareholder. Rose called for Issa last month to step down, saying he was “embarrassed by Asda’s performance”.
Issa remains a coowner of Asda, and will continue to serve as a nonexecutive member on the board. He will be the CEO of EG Group – the petrol forecourts business where he made his fortune with his brother Zuber. TDR has completed the purchase of Zuber’s 22,5% stake in Asda. This leaves it as a joint owner, along with Mohsin.
Early this year, reports suggested that there was a rift in the family after Mohsin’s divorce. The breakdown of the marriage was said to have sent shockwaves through the family. In March, Mohsin said that there was no estrangement between the brothers, stating they “get along exceptionally well”.
Asda has been searching for a new chief executive following a turbulent period at the top. The group was purchased by the billionaire Issa Brothers and TDR through a £6,8bn debt-fuelled deal in October 2020.
Insiders in the industry say Asda struggles to find a chief executive with experience to help it stem its decline. This is because Mohsin Hassa has been running the operations ever since Roger Burnley, the former chief executive, left the company three years ago.
The supermarket chain continued to lose market share, according to figures released Wednesday. According to analysts at NIQ the company was the sole large grocery chain whose sales declined in the three-month period ending 7 September. A 5.5% drop resulted in its market share dropping 1.3 percentage points, to 11.8%.
Rose said: “We fully respect Mohsin Mohsin Mohsin Mohsin Mohsin Mohsin Mohsin Mohsin Mo’sin decision to leave Asda where his role is completed to become the sole CEO of EG Group.”
“We’re grateful to Mohsin, for his role in leading Asda. He launched the company into the convenience store market and introduced a loyalty program that is now used by over 6 million customers.
He has built the foundations for a world-class IT Infrastructure, strengthening Asda on the long-term. I am looking forward to continuing benefiting from his insights as a nonexecutive member of our board.
Mohsin stated: “I’m very proud of our highly experienced team and the significant progress we made in building a bigger, better Asda during the last three year, as well as the unwavering commitment that we make to offer customers uncompromising value.
“Given the achievements we have made and the strategic steps that have been taken, I’ve decided it is time to step down from my role as Asda’s chief executive to concentrate on EG Group.”
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.