Asda returns to growth after more than two years
Asda has reported its first quarterly sales growth in more than two years, signalling early progress in its turnaround after prolonged operational and financial difficulties. Executive chair Allan Leighton said lower prices, a stronger online service and steadier IT systems were bringing more customers back, though the retailer remains under pressure from Aldi, Lidl, Tesco and Sainsbury’s.
Sales at established stores, excluding fuel, rose 0.2% in the three months to June, reversing a 2.3% fall in the previous quarter; food sales increased 0.7%, while clothing and non-food sales declined. Asda has struggled since its £6.8bn 2020 buyout by the Issa brothers and TDR Capital, including a costly IT overhaul approaching £1bn, and plans to use Ocado technology to improve online operations from next year.
- Asda recorded its first quarterly sales growth since early 2024.
- Food sales rose, but non-food and clothing sales fell.
- Aldi remains close to overtaking Asda in market share.
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Asda is one of Britain’s largest supermarkets, selling food, clothing and household goods in shops and online. Its established-store sales measure tracks shops open for at least a year and excludes fuel, helping show how the underlying retail business is performing.
The retailer was bought in 2020 by brothers Mohsin and Zuber Issa and private equity firm TDR Capital. Since then it has faced operational problems, including a costly overhaul of its computer systems, while competing with discount chains Aldi and Lidl and larger rivals Tesco and Sainsbury’s.
Asda’s performance matters to shoppers and the wider grocery market because it is trying to win customers while keeping prices low and improving its online service. It plans to use technology from online grocer Ocado to support that service.