#AsdaOwnership

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Lord Rose’s Perspective on Mohsin Issa’s Leadership at Asda: Should He Step Down?

Lord Stuart Rose, chair of Asda, has expressed his embarrassment over the supermarket chain's recent decline in market share, calling for co-owner Mohsin Issa to step back from the daily operations of the retailer. In an interview with The Telegraph, Rose candidly admitted his dissatisfaction with Asda’s performance, saying, "I’m going to be completely honest with you. Having been in this industry for a long time, I feel somewhat embarrassed. I won’t deny it."

Rose’s comments come on the back of a report showing a 2.2% decline in Asda’s quarterly sales and a 5.3% drop in like-for-like sales. The retailer’s market share has slipped from 13.6% to 12.7%, losing ground to rivals such as Tesco, Sainsbury’s, Morrisons, and discount chains, according to Kantar data.

Rose suggested that Mohsin Issa, who co-owns Asda alongside TDR Capital, should distance himself from day-to-day operations to help turn around the company’s fortunes. “I would not advise him to get involved in operations, and I am the chairman,” Rose remarked. He emphasized that while Issa has been a disruptive and entrepreneurial force, the current phase of the business requires a different approach.

TDR Capital holds a 67.5% stake in Asda, with Mohsin Issa owning the remaining 22.5%. His brother Zuber Issa, who previously held a 22.5% share, exited earlier this year to focus on other ventures. Walmart retains a 10% stake in Asda, having sold the majority of its holding in 2021 when the Issa brothers acquired the chain for £6.8 billion.

In response to the challenging performance, Asda’s Chief Financial Officer, Michael Gleeson, outlined the company’s plans to revamp its store estate, increase staff hours for better shelf replenishment, and strengthen consumer loyalty.

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