Mohsin Issa to step away from Asda as search for CEO continues
Supermarket giant Asda has announced that Mohsin Issa will step away from his executive leadership role to focus on his position as sole chief executive of petrol forecourts business, EG Group.
Lord Stuart Rose will assume Mohsin’s responsibilities alongside TDR Capital partner Rob Hattrell, the Leeds-headquartered grocer said, while Mohsin Issa will remain a co-owner of Asda and non-executive on the board.
Asda will continue its three-year search for a chief executive “to lead the business in the next phase of its strategy” and said it will update the market “in due course”.
Lord Rose had previously called on Issa to step away from the firm: “We need a full-time fully experienced retail executive to come in… we always said Mohsin was a particular horse for a particular course,” he said in August.
Mohsin and his brother Zuber – together with TDR Capital – bought Asda in 2021 in a debt-fulled takeover, and Mohsin has since been heavily involved in the day-to-day running of the company.
Asda set for TDR Capital to become majority owner
The brothers began to split their business interests in Asda earlier this year, and Mohsin took a larger role in the day-to-day running of the grocer while Zuber acquired EG group’s remaining UK forecourt business and certain foodservice locations as well as stepping down as co-ceo of EG.
Asda recently implemented an ambitious turnaround plan to combat grocery market share losses to competitors Tesco, Sainsburys, Aldi and Lidl.
Mohsin Issa, co-owner of Asda, said: “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.
“It is a very exciting time for EG Group, and I am looking forward to focusing on the business while supporting Stuart, Rob and the leadership team in my capacity as a shareholder of Asda.”
Lord Rose added: “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.
“We are very grateful to Mohsin for the role he has played in overseeing Asda… I look forward to continuing to benefit from his insight as a non-executive director on our board.”
EG Group to complete divestment in October
Separately, EG announced that the sale of its remaining UK forecourt business and certain foodservice locations to Zuber Issa has been approved, and the group expected to complete the sale at the end of October this year.
Zuber Issa said: “Mohsin and I have realised and surpassed our own expectations and the group is a UK success story on a global stage.
“We pioneered the convenience retail and foodservice model at the roadside and now EG has an extensive global network spanning nine international markets across the UK, Continental Europe, US and Australia with more than 5,500 sites and employing about 38,000 colleagues.
“Our business represents the very best standards and customer experience of leading retail brands in fuel, foodservice, grocery and merchandise. I am very proud of what we have built together and look forward to being part of the Group’s continued success.”
Zuber Issa will focus on returning to his entrepreneurial roots with a view to leading and growing a new UK petrol forecourt and convenience retail business, including food service, to be branded ‘EG on the Move’.