Survey: Majority of staff less confident about Asda's long-term strategy

ASDA's leadership is facing challenges after a staff survey showed that less than half of the workers are confident in the supermarket's long-term plan.

The survey, completed by 75,591 employees last month, revealed that only 47 per cent of respondents believe in the supermarket chain's strategic direction, the Telegraph reported.

Additionally, just 48 per cent of workers felt they could explain the benefits of Asda’s "Future Programme," which involves transitioning IT systems from former owner Walmart.

This change, overseen by co-owner Mohsin Issa, has encountered problems, including incorrect pay for thousands of staff, leaving some without enough money and others having to repay the supermarket.

Asda acknowledged these "short-term challenges." In the survey, however, 50 per cent of employees expressed confidence that the company would address the issues raised.

According to the report, the survey results added pressure on Asda's leadership to improve their turnaround strategy amid ongoing staff dissatisfaction and a decline in market share.

CEO Mohsin Issa has been trying to revitalise the supermarket by overhauling management and bringing in new executives like Iceland’s group buying director Andrew Staniland.

Despite these efforts, data from consumer intelligence firm NIQ showed a 5.9 per cent drop in sales for the 12 weeks leading up to July 13 compared to the previous year, making Asda the only major supermarket with declining sales.

Marketing data and analytics company Kantar's figures indicated that Asda's market share has decreased to 12.7 per cent from 14.8 per cent since Issa and his partners acquired the company in 2021.

MPs have questioned whether cost-cutting measures are affecting Asda's competitiveness. The supermarket insists it is reinvesting in the business, upgrading stores, and increasing staff.

Union leaders, including GMB national officer Nadine Houghton, were not surprised by the survey results. Houghton criticised Asda's lack of a clear strategy, noting the supermarket's loss of market share, the departure of senior staff, and the ongoing search for a new CEO.

Asda has been looking for a replacement for Mohsin Issa, who has managed the supermarket since 2021, offering a pay package of between £8 million and £10m for the role.

An Asda spokesman said the company is conducting an "extensive international search" for a permanent CEO and is committed to finding the best candidate.

The spokesman added that Asda regularly updates the GMB on various topics, including future investment plans, and values direct feedback from the survey, which allows employees to share their honest opinions.

Asda's overall engagement score, which measures pride, advocacy, and commitment among employees, exceeded 70 per cent. However, the company acknowledges areas needing improvement and is focused on addressing these issues.