Asda has said its chairman Stuart Rose will assume executive responsibilities of co-owner Mohsin Issa as he steps back from his leadership role.
The UK’s third largest grocer has been losing market share as it underperformed rivals over the past year.
Market leader Tesco and number two chain Sainsburys have pulled ahead while monthly data consistently showed Asda’s growth lagging behind.
Data published on Wednesday from market researcher NIQ showed that Asda’s sales fell 5.5% over the 12 weeks to 7 September year-on-year.
The chain also lost 1.3 percentage points of market share over the year.
Executives
Last month, Rose – who was formerly the CEO of Marks & Spencer and chairman of Ocado – told the Telegraph newspaper that he was embarrassed by Asda’s performance.
Asda has not had a chief executive officer in place since Roger Burnley left abruptly in 2021.
While the search for a permanent CEO continues, the company said Rose would work alongside Rob Hattrell, a partner at private equity firm TDR Capital, who is already a director on the supermarket group’s board.
Issa and TDR Capital own Asda, while its previous owner – US retailer Walmart – retains 10%.
On his departure from an executive position, Issa said, “I have decided now is the right time for me to step back from my oversight role at Asda.”
Issa will remain a non-executive director but focus on his role as sole CEO of petrol forecourt operator EG Group.
Rose praised Issa for launching into the growth market of convenience stores, introducing a loyalty app which now has more than six million users, and laying the foundations to deliver “a world-class IT infrastructure.”
Analysts say Asda has been weighed down by the cost of servicing the debt it took on when brothers Mohsin and Zuber Issa and TDR Capital bought 90% of Asda from Walmart.
The parties completed the £6.8 billion deal in 2021.
In June, TDR agreed a deal to gain majority ownership by acquiring Zuber Issa’s share.
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