Mohsin Issa, one of the billionaire brothers who own Asda, has revealed plans to step down from running the UK’s third-largest supermarket. In his first ever interview, Issa stated that he is leading a “reset” at the company before appointing a new CEO. He dismissed talk of a rift with his brother Zuber, saying the pair “get on exceptionally well” and speak several times a day. The brothers built up an empire which now spans 10 countries and includes over 6,000 convenience and petrol stations, including Starbucks, Greggs, and Subway at many locations.
The brothers’ journey began when they jointly purchased their first petrol station in Bury, Greater Manchester, in 2001. With oil companies divesting in petrol stations on UK high streets, the brothers believed there was an opportunity to expand. They later joined forces with private equity firm TDR Capital to acquire more vacant sites and then made shops on forecourts more attractive, in order to increase sales of coffee, fast food, other groceries, including a shift from “dirty, kiosk style” stores that only offered “cokes and smokes.”
Issa claimed the pair were “lucky” and in the right place at the right time, taking advantage of opportunities that came their way. Previously, the brothers have shunned the media spotlight but their business has grown so much that last year they were listed 40th on the Sunday Times’ Rich List with a net worth of £5.05bn. In 2018, the brothers took over Asda from Walmart for £6.9bn, taking on a debt load of £5bn, which provoked questions about the sustainability of the company’s finances but both Issa and Asda argue the debt is sustainable as 90% of it is fixed.
Despite Asda’s declining market share, with Aldi and Lidl gaining more customers, Issa sees Asda as a “once in a lifetime opportunity” and is eager to turn it around. He is focused on shifting Asda into the future, including launching more convenience stores under the Asda Express brand, alongside implementing a ‘best-in-class’ IT system. Issa is ready to step down from his position, stating that he intends to appoint a new CEO to head up the business. Although there are no more business deals planned for the moment, Issa has not ruled out future acquisitions, stating, “that’s in your DNA,” given the brothers’ entrepreneurial spirit
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