// Asda owners the Issa brothers have Sainsbury’s in their sights as they aim for Asda to reclaim their position as the UK’s second largest supermarket
// The Issas plan to grow Asda’s convenience business and improve product quality perceptions.
Asda owner the Issa brothers have Sainsbury’s position as the UK’s second biggest supermarket in their sights as they unveil their growth strategy.
Mohsin Issa said to The Sunday Times: “We are happy to commit whatever we need to get to that position. It’s not like we have got a clear five-year ‘get out’ plan; we and TDR have bought this business for the long term.”
Issa, alongside brother Zuber and London-based private equity firm TDR Capital bought Asda from Walmart in a £6.8 billion deal almost 18 months ago.
Part of their plan to grow the business includes expanding Asda’s convenience arm.
The billionaire Issa brothers, who made their fortune in garage forecourt business EG Group, have opened 31 Asda convenience stores on EG forecourts and plan to have more than 300.
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Meanwhile, the brothers are also introducing dedicated greengrocers in its stores. By next month, 250 Asda stores will have dedicated “greengrocers” working in fruit and veg departments.
The move is part of a wider shift towards improving Asda’s product quality. However, Mohsin Issa insisted it would not abandon Asda’s low price heritage. The supermarket’s entry-level “Smart Price” range is being revamped and from May will be widened to cover more than 300 products, up from 200 today.
To reclaim the second spot in the UK’s largest supermarket list, the Issas will have to achieve some major improvements.
Asda’s sales fell 5.5% in the 12 weeks to February 20, according to Kantar Worldpanel. On a two-year comparison, which strips out the impact of Covid lockdowns, Asda’s 4.3% growth is barely half that of the wider market.
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