The chairman of Asda has expressed optimism about the company's trajectory, noting "making good progress" in spite of continued sales decline.
For the first quarter ending 31 March, 2025, the Leeds-headquartered supermarket reported a revenue – excluding fuel – of £5bn, marking a 5.9 per cent dip from the previous year, as reported by .
Adjusted for Easter timing, like-for-like sales for the four-month period until the end of April have seen a 3.1 per cent descent.
Battling with falling sales and market share in the face of stiff competition from both discount retailers and established supermarkets, Asda has been contending with low customer satisfaction and substantial debt levels.
Since being acquired by TDR Capital and the billionaire Issa brothers in 2021 through a debt-laden buyout, Asda's market share has slipped from 15 per cent to 12.1 per cent as of May this year.
Despite these challenges, the supermarket's sales performance for the three months from March to May indicates its strongest showing in a full year, according to figures by Kantar.
Under the guidance of Allan Leighton, the returning chair, Asda has initiated a revival strategy emphasising lower prices, improved stock availability, and a more diverse product selection, with at least two of these measures already yielding positive results.
In an aggressive push towards affordability, the grocer has cut prices on approximately 10,000 items, establishing a price advantage of three to six per cent over traditional full-service rivals.
Stock availability has leapt from 90 per cent at the outset of the year to 95 per cent, paralleled by a climb in customer satisfaction scores.
Asda Price focus for supermarket giant
Asda has announced a strategic focus on value, with Leighton commenting: "Earlier this year we set out a clear ambition to make Asda the number one choice again for value-conscious families."
He further detailed the company's commitment: "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."
Leighton highlighted the progress made: "We're making good progress – with around 10,000 products at these lower price points – and customers are seeing the difference in their pockets."
He also noted improvements in store operations: "There has been a striking improvement in availability, which is now up to 95 per cent, and our customer satisfaction measures have improved too."
Despite positive changes, Leighton acknowledged the journey ahead: "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'
The supermarket chain is determined to 'invest in lower prices', as Michael Gleeson, Asda's chief financial officer, stated: "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."
Gleeson expressed confidence in the company's direction: "This has established a price advantage over other full-service supermarkets and we are beginning to see customers respond positively."
He reassured stakeholders of Asda's financial prudence: "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 commands a 67.5 per cent stake in Asda, while tycoon Mohsin Issa owns a substantial 22.5 per cent with Walmart Inc retaining a 10 per cent holding.
