Asda Stores Ltd has announced that co-owner Mohsin Issa is stepping down from his executive leadership role to focus on his role as chief executive of EG Group.
The announcement comes following mounting pressure from Asda chair Stuart Rose for him to step down.
Asda is facing a declining share of the British supermarket sector, with Rose admitting he feels embarrassed by the private equity-owned chain's performance.
Asda’s like-for-like sales fell by 5.3% in the second quarter and Mohsin’s brother Zuber Issa’s recent decision to exit his stake in the business did little to encourage optimism.
Issa will remain a co-owner of Asda and non-executive on the board, while Rose will assume his responsibilities.
“I am very proud of the highly experienced team we have built, and the significant progress made to build a bigger and better Asda over the last three years, as well as our unwavering commitment to provide customers with uncompromising value,” stated Issa.
“Given these achievements and the significant strategic steps we have taken, 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.”
“We respect Mohsin’s decision to move on from his role at Asda,” said 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.”