Asda co-owner Mohsin Issa is planning to step back from his role at the supermarket giant after carrying out a “reset” of the business.
In his first broadcast interview with the BBC, Issa said that while he was “here for the long haul,” he would appoint a chief executive to take over daily management of the company.
It comes as his brother and co-owner Zuber Issa is considering selling his 22.5% stake in the grocer to put his focus back into EG Group’s petrol station empire.
While rumours have swirled of a rift between the billionaire brothers, Mohsin insisted that they “get on exceptionally well.”
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
“We talk to each other probably two or three times a day. We’ve been very, very privileged. We have been on a journey and we have got a long way still to go,” he explained.
Speaking of Asda’s £4.9bn debt pile, Issa said that it was sustainable as he claimed that 90% of its debt is fixed.
He told the BBC that as the business creates so much cash, “even if our interest payments were to double Asda has more than sufficient headroom to service that.
“We’re in a transition period where we’re evolving, but also we’re investing significantly. Market share will fluctuate over a period of time.
“We feel we’re doing the long term investment that will help us regain some of that market.”
It comes as Asda has proposed a record investment of £150m to boost retail pay by 8.4% for hourly-paid store colleagues.
If Udsaw members accept the new rate of pay in a ballot that closes on 15 March, Asda will become the highest paying UK grocery retailer.
3 Comments. Leave new
Boosting retail pay by 8.4%, is that on top of the £11.44 minimum wage?
I believe it goes to £12.04 from 1st July
Asda will not be highest paid because every other supermarket get there pay rise of over £12 an hour from april Asda’s pay rise is from july take that over 12 months and Asda is lagging behind once again.