Lord Rose takes control of Asda after ‘embarrassing’ performance under Issas

Chairman, who previously ran Marks & Spencer, takes over troubled supermarket

Asda chairman Lord Rose has taken control of the struggling supermarket after Mohsin Issa formally stepped down as chief executive. 
Lord Rose, who previously headed up Marks & Spencer and Ocado, will assume the day-to-day running at Asda, the company announced on Wednesday. 
Asda said Mr Issa would remain a co-owner of the business and a non-executive of the board.
However, Lord Rose told The Telegraph last month that he would encourage Mr Issa not to intervene in operations.
The departing chief is now expected to focus on his role running petrol station empire EG Group, which he had built with his brother, Zuber. The two billionaires have recently been disentangling their fortunes by splitting the EG operations. 
Lord Rose said: “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.”
Mr Issa said he was proud of the “significant progress to build a bigger and better Asda over the last three years”. He added that there were “many opportunities” at EG Group.
Lord Rose’s priority will be halting Asda’s sales slump,  which he previously told The Telegraph he had been “embarrassed” by. The retail veteran said at the time he was planning to take an increasingly active role in the business.
His decision to replace Mr Issa comes after a long-standing search for a new chief executive at Asda failed to yield results. Mr Issa has run the business since 2021, when he and brother, Zuber, bought the supermarket from Walmart with financial backing from private equity group TDR Capital. 
Earlier this year, The Telegraph revealed that Asda was touting a pay package of between £8m and £10m for the position in an effort to lure top-end candidates.
However, Mr Issa’s continued involvement in Asda was believed to be an obstacle in finding a replacement.
Lord Rose said last month: “We need a full-time, fully experienced retail executive to come in.”
Asda said it would continue its search for a permanent chief executive “to lead the business in the next phase of its strategy”. 
Mr Issa’s exit comes shortly after Zuber sold his stake in the supermarket to TDR, effectively breaking the Issas’ controlling grip over Asda.
The announcement of the change of leadership comes after months of losing customers. Industry data released on Wednesday suggested Asda sales were still in freefall.
According to NIQ Total Till figures, sales at Asda were down 5.5pc in the 12 weeks to Sep 7 compared to the same period a year earlier.
Its market share has dipped from 13.1pc to 11.8pc over the past year. It means rival Aldi is closing the gap. The German discounter now holds a 10.3pc share of the market. 
Asda’s performance has sparked frustration among employees. In the company’s annual survey, completed earlier this summer, 47pc of respondents said they felt confident in Asda’s long-term strategic plan.
Staff morale has taken a hit from issues with its payroll system, as bosses pushed ahead with a long-running project to decouple Asda’s IT systems from those of its previous owner, Walmart.
Asda announced last month that it was planning to boost staff hours, including putting more workers on its checkouts, in an effort to lure back customers. It is also spending on making its stores cleaner and improving the availability of products.