Asda Stores Ltd has confirmed that co-owner Mohsin Issa will be stepping down from his executive leadership role to concentrate on his position as chief executive of EG Group, the global convenience retailer.

Issa will remain a co-owner of Asda and a non-executive member of the board alongside private equity firm TDR Capital. Chairman Stuart Rose, TDR partner Rob Hattrell, and the supermarket’s existing management team will assume his responsibilities.

Mr Issa 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.”

The move follows increasing pressure from Asda’s chair, Stuart Rose, urging Issa to step aside amid concerns over the supermarket’s performance.

Asda has been struggling with a shrinking share in the UK supermarket sector, with Rose publicly expressing his disappointment and stating he felt “embarrassed” by the chain’s recent performance under its private equity ownership.

“We respect Mohsin’s decision to move on from his role at Asda,” stated Rose.

“We are very grateful to Mohsin for the role he has played in overseeing Asda, including launching into the growth market of convenience stores and introducing a loyalty app now used by more than six million customers.”

Asda confirmed it is looking for a new chief executive to lead the firm and stated that updates will follow “in due course.”

UK private equity firm TDR Capital invested in Asda alongside the Issa brothers, and together they took majority ownership of the business in June 2021. With the deal, Mohsin Issa remained a co-owner in Asda alongside TDR Capital, bringing the ownership of Asda to 67.5 per cent by TDR Capital, 22.5 per cent by Mohsin Issa, and 10 per cent by Walmart Inc.

Asda’s like-for-like sales fell by 5.3 per cent in the second quarter, and Mohsin’s brother Zuber Issa decided to exit his stake in the business, selling it to TDR Capital in July. In August, research group Kantar reported that Asda’s sales tumbled to £4.26 billion in the 12 weeks to 4 August, down 6 per cent on the same period in 2023.

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