Asda Sales Drop Again, Chairman Feels Embarrassed

Asda's recent performance has raised alarms, with chairman Lord Stuart Rose expressing embarrassment over the supermarket's declining market share. Once the second-largest grocer in the UK, Asda's share has plummeted from 14.1% at the time of its £6.8 billion acquisition by the Issa brothers and TDR Capital in 2021 to a record low of 12.6%. This decline is attributed to customers increasingly turning to competitors like Aldi, Lidl, Tesco, and Sainsbury’s. In a candid statement, Rose acknowledged the need for change in leadership, suggesting that co-owner Mohsin Issa should step back from daily operations. Since the takeover, Issa has been temporarily managing the company while the search for a permanent CEO continues. An Asda spokesperson confirmed that the company is aware of its shortcomings and is prioritizing improvements in customer experience. Analysts have criticized Asda for poor store standards, citing empty shelves and unstaffed checkouts as significant issues in a highly competitive market. Shore Capital analyst Clive Black emphasized that Asda's offerings have not kept pace with rivals, further exacerbating its struggles. In contrast, Morrisons, another supermarket under private equity ownership, has also seen a slight decline in market share but reported a 1.4% increase in sales under new CEO Rami Baitiéh. Meanwhile, Zuber Issa recently sold his shares in Asda to TDR, while Mohsin Issa retains a 22.5% stake in the company.