Asda’s struggle among the Issa brothers has been criticized by chairman Lord Rose

Lord Rose, chairman of Asda, has expressed his shame at the supermarket’s recent decline, especially under the leadership of the Issa brothers.

In a candid interview with The TelegraphRose acknowledged the challenges facing Asda and raised concerns about the company’s declining performance and market share.

Following a 2.1% decline in like-for-like sales in the first half of the year, Rose made outright criticism of the supermarket’s trajectory. “To be completely honest, I’ve been in this industry for a long time and I’m a bit ashamed of it. I won’t deny that,” Rose noted. “I don’t like coming second, third or fourth. If you look at the comparative figures of Kantar or other indexes, we are not performing as well as we should be. And I don’t like that.”

Since the Issa brothers took over Asda in 2021, the supermarket’s market share has fallen from 14.8% to 12.7% as of July. In contrast, competitors such as Aldi, Lidl and Tesco have made significant gains.

Rose, the former chief executive of Marks & Spencer, suggested co-owner Mohsin Issa should step back from Asda’s day-to-day operations. “I would not encourage him to intervene in the business, and I am the chairman,” he stated, suggesting the need for more experienced retail leadership as Asda grapples with its challenges.

After taking over as chairman of Asda shortly after its £6.8 billion takeover, Rose plans to take a more active role in the supermarket’s recovery as the company searches for a full-time CEO to provide leadership in the supermarket. will take on in the new year. Meanwhile, Asda has announced plans to invest tens of millions in additional checkout staff, acknowledging that the push for self-checkout has gone too far.

Mohsin Issa, who retains a 22.5% stake in Asda alongside private equity firm TDR Capital, is expected to shift his focus to EG Group, the petrol station company where he found initial success. Noting that Asda now needs a different type of leader, Rose said: “We always said Mohsin was a particular horse for a particular course. He is a disrupter, an entrepreneur, an agitator. We’ve added a significant number of stores and made many changes, but now a different animal is needed. In the most beautiful way possible, Mohsin’s work is largely completed.

Zuber Issa, Mohsin’s brother, sold his stake in Asda earlier this year as part of a wider separation of the Issas’ business interests, following internal family disputes.

Rose also pointed out that under Mohsin’s management Asda had lost focus on its customers and became too absorbed in an £800 million IT overhaul called Project Future. This project aims to decouple Asda’s systems from those of its former owner, Walmart, a process that has proven complex and time-consuming.

Reflecting on the transition, Rose, who visits Asda’s Leeds headquarters every week, said: “Walmart owned Asda for 20 years and ran it as a business that was not a core part of its global business. While we have focused intensely on certain aspects, we may have taken our eye off the ball in others. I still see myself as a retailer and when I walk into a store, I try to look at it through the eyes of the customer.”

The IT project is due to be completed by the end of the year, with significant financial penalties looming if it is delayed. However, Rose emphasized the importance of a smooth transition, even if it entails additional costs. “There is an incentive to be ready on time, but if that means paying a little more to ensure the safety of the transition, then I would pay a little more,” he concluded.