Asda faces staff confidence crisis amid turnaround efforts

The IT overhaul, managed by co-owner Mohsin Issa, has been hit with problems. Earlier this year thousands of employees received incorrect pay, resulting in some being underpaid while others had to reimburse the supermarket.

The results are expected to increase pressure on the grocer’s executives who are focused on turning around the business, which has suffered market share decline since the Issa brothers and TDR took it over in 2021.

Asda co-owner Mohsin Issa has been implementing a significant management shake-up to address this, bringing in key figures like Iceland’s group buying director Andrew Staniland.

Last month, Issa said he could offer the supermarket’s new chief executive a pay package worth up to £10m as he aims to fill the vacant position.

Grocery sales figures released last week by data company NIQ revealed that Asda’s sales were still falling with a 5.9% drop in the 12 weeks to July 13 compared to a year earlier. The chain is the only major supermarket where sales are on the decline.

Separate figures from Kantar show Asda’s market share has fallen 12.7%, compared to 14.8% when it was bought by the Issas and TDR.