Asda's Mohsin Issa injects £30m amid sales slump

ASDA CEO, Mohsin Issa, has announced a £30 million emergency cash infusion to address a significant sales slump at the supermarket chain.

This investment, aimed at enhancing staffing hours and customer service, will be rolled out before the year-end, the Telegraph reported.

The firm's market share has declined, making it the only major supermarket experiencing a drop in customer numbers. Recent data from consumer intelligence company, NIQ, indicated a 5.9 per cent decrease in sales over the 12 weeks leading up to July, compared to the previous year.

A spokesperson said, “We recognise that there are some areas where we can and need to improve, and have set out our plan for colleagues to improve the availability of products in stores, the overall customer experience and ensuring we have the right trade plan throughout the remainder of the year.”

Since the 2021 acquisition by Mohsin Issa, his brother Zuber, and TDR Capital, Asda's market share has dipped from 14.8 per cent to 12.7 per cent. The company's underperformance has attracted criticism from union leaders, with GMB union national officer Nadine Houghton highlighting cuts to shop floor hours and a lack of investment in stores.

She expressed concerns over Asda’s market share loss and senior staff departures, doubting the owners’ strategy to restore its position as a value-oriented supermarket for working families.

Asda disputes these criticisms, maintaining regular updates to the GMB on its investment plans. However, internal dissatisfaction persists, as revealed by a company survey last month.

Only 47 per cent of respondents expressed confidence in Asda’s long-term strategy, and just 48 per cent felt capable of explaining the benefits of the “Project Future” IT overhaul, which has faced significant challenges since separating from Walmart.

Adding to its financial commitments, Asda has initiated a £50m store upgrade programme since March, targeting improvements in 173 stores to enhance the shopping experience.