Asda ‘making good progress’ despite sales continuing to fall
The chairman of Asda has said the supermarket giant is “making good progress” despite its sales continuing to fall.
The Leeds-headquartered chain has reported a revenue – excluding fuel – of £5bn for the three months to 31 March, 2025, the first quarter of its financial year.
The total is a 5.9 per cent decrease year-on-year while its like-for-like sales adjusted for Easter, the four months to the end of April, declined by 3.1 per cent.
Asda, which is majority owned by TDR Capital, has been struggling with declining sales and market share fuelled by competition from both discounters and traditional supermarkets, low customer satisfaction and high debt.
Its market share has fallen from 15 per cent in 2021, when it was bought by TDR Capital and the billionaire Issa brothers in a debt-fuelled takeover, to 12.1 per cent in May this year.
But its three-month sales performance from March to May was the grocer’s best for a year, according to Kantar.
Asda’s turnaround plan has largely been the brainchild of returning chair Allan Leighton, who has focused on lower prices, higher availability and a better range of products.
At least two of the three elements have so far borne fruit.
So far, around 10,000 products are available at a lower price, with a three to six per cent price gap over traditional full-service supermarkets, the company said.
Product availability has increased from 90 per cent to 95 per cent since January, while customer satisfaction has also improved.
Asda Price focus for supermarket giant
Leighton said: “Earlier this year we set out a clear ambition to make Asda the number one choice again for value-conscious families.
“To deliver this, we are making a material investment to move our entire range to a new, lower Asda Price by the end of next year.
“We’re making good progress – with around 10,000 products at these lower price points – and customers are seeing the difference in their pockets.
“There has been a striking improvement in availability, which is now up to 95 per cent, and our customer satisfaction measures have improved too.
“Although we are seeing the green shoots in sales performance, there is a long way to go, and we remain firmly focussed on widening the price gap over other full-service supermarkets to give customers the savings they expect every time they shop at Asda.”
Chain wants to ‘invest in lower prices’
Michael Gleeson, Asda’s chief financial officer, added: “We have a clear strategy which we are executing against backed up by a robust financial plan and a material programme of investment in price, range and availability.
“This has established a price advantage over other full-service supermarkets and we are beginning to see customers respond positively.
“Our consistent and disciplined approach to cash management and strong balance sheet, gives us the headroom to continue investing in lower prices for customers.”
“Our consistent and disciplined approach to cash management and strong balance sheet, gives us the headroom to continue investing in lower prices for customers.”
TDR Capital holds a 67.5 per cent stake in Asda, with billionaire Mohsin Issa owning 22.5 per cent while Walmart Inc has a 10 per cent holding.