Lord Rose has assumed control of Asda, the UK's third-largest supermarket chain, following Mohsin Issa's formal departure from the CEO position. The retail veteran, with extensive experience leading major companies, will now oversee Asda's daily operations.
Asda announced that Issa will maintain his status as co-owner and non-executive board member. However, Lord Rose has previously indicated his intention to limit Issa's operational involvement. The departing CEO is expected to concentrate on his role at EG Group, the petrol station empire.
Lord Rose stated:
"We respect Mohsin's decision to move on from his role at Asda, where his work is complete, to be the sole CEO of EG Group. He has laid the foundations to deliver a world-class IT infrastructure, strengthening Asda for the long term."
The new CEO's primary focus will be addressing Asda's declining sales. Lord Rose has previously expressed embarrassment over the supermarket's recent performance. His decision to replace Issa follows an extended search for a new chief executive, with Issa having led the business since 2021.
Earlier this year, reports suggested Asda was offering a substantial compensation package of £8m to £10m to attract top-tier candidates for the CEO position. However, Issa's continued involvement was perceived as a potential obstacle in the recruitment process.
Recent industry data indicates Asda's sales continue to decline. NIQ Total Till figures show a 5.5% decrease in sales for the 12 weeks ending September 7, 2024, compared to the same period last year. The company's market share has also dropped from 13.1% to 11.8% over the past year.
Asda, founded in 1949 by the Asquith family, has a rich history in the UK retail sector. The company employs over 140,000 people and operates more than 600 stores across the country. Despite its significant presence, Asda has faced increasing competition from discount retailers like Aldi and Lidl in recent years.
Lord Rose's extensive experience, including leadership roles at Marks & Spencer and Ocado, will be crucial in navigating Asda's current challenges. The company has been involved in various initiatives, including sustainability efforts and expanding its online presence, which may play a role in its future strategy.
As Asda enters this new chapter under Lord Rose's leadership, the retail industry will be watching closely to see how the supermarket chain addresses its recent struggles and adapts to the evolving market landscape.