Lord Rose urges co-owner to step back as supermarket struggles to regain market share.

  • Asda chair Lord Rose expresses embarrassment over the supermarket’s performance.
  • The supermarket reported a 5.3% decline in like-for-like sales in the second quarter.
  • Asda’s market share dropped from 14.8% in 2021 to 12.7% last month.
  • Lord Rose suggests co-owner Mohsin Issa should step back from daily operations.
  • Rose emphasizes the need for a full-time, experienced retail executive to lead Asda.

Asda’s chairman, Lord Rose, has openly admitted to feeling ’embarrassed’ by the supermarket’s recent performance. Under his leadership, Asda has seen a significant 5.3% drop in like-for-like sales during the second quarter, and its market share has plummeted from 14.8% at the time of the Issa brothers’ acquisition in 2021 to just 12.7% last month. In an interview with The Telegraph, Rose stated, ‘I’ve been in this industry for a long time and I am slightly embarrassed. I don’t like being second, third or fourth.’ He pointed out that Asda’s performance is not meeting expectations compared to competitors. Rose believes that co-owner Mohsin Issa should take a step back from the day-to-day operations of the supermarket. He remarked, ‘I wouldn’t encourage him to [intervene in operations], and I am the chairman.’ Asda is currently searching for a new full-time CEO, and Rose plans to take a more active role during this transition. He stressed the importance of bringing in a seasoned retail executive, stating, ‘Mohsin’s work is largely complete.’ While acknowledging the changes and store additions made under Issa’s leadership, Rose insists that Asda now requires a different type of leadership to move forward.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Asda’s performance under Lord Rose’s supervision and his opinion on Mohsin Issa stepping back from running the supermarket. It also mentions plans for a new CEO and Boohoo’s upcoming marketplace launch.
Noise Level: 4
Noise Justification: The article provides relevant information about Asda’s performance and the role of Mohsin Issa in the company. However, it contains some filler content with the mention of Boohoo launching its first marketplace offering, which is unrelated to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: Asda’s performance affects the financial markets and companies in the retail industry
Financial Rating Justification: The article discusses Asda’s poor sales performance and its impact on market share, which can affect the company’s stock price and investor confidence. It also mentions the search for a new CEO, indicating potential changes in management that could impact the company’s financial future.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses a decline in Asda’s performance and calls for a change in leadership, but it does not meet the criteria for an extreme event.

Reported publicly: www.retailgazette.co.uk