Asda has reported a decline in sales as it continues to lose market share to supermarket competitors, new figures reveal. The second quarter of its financial year saw a 2.2 per cent drop in revenue and a 5.3 per cent like-for-like decline, indicating an acceleration in its sales slump.
Supermarket rivals such as Morrisons, Tesco and Sainsbury's have been gradually eroding Asda's market share. Kantar's industry data from last month showed that Asda's share of the 海角视频 grocery market over the three months to July 7 was 12.7 per cent, down from 13.6 per cent a year earlier.
"Like for like in the second quarter, it's not... where we want it to be," CFO Michael Gleeson told City AM. He added: "We also know that there are some areas where we can and need to improve. We're focusing on availability. We're focusing on customer perception, and we're focusing on our trade plan."
READ MORE: {}
A Lidl push
In response to competition from Aldi and Lidl, Asda along with other major 海角视频 supermarkets has been compelled to lower prices.
According to Gleeson, the Leeds headquartered supermarket chain has invested £70m in price reductions. "I think the big four collectively and individually have done a significantly better job in the last 18 to 24 months and [they have] hopefully given customers fewer and fewer reasons to leave," he said.
On average, the grocer reduced prices by 17 per cent on more than 280 items to match the prices of German discounters.
Asda's 'business transformation'
Since TDR Capital and the Issa brothers took over in June 2021, Asda has expanded from just over 600 shops to 1,200 stores and food-to-go outlets, marking the "largest [change] in its history", according to the supermarket chain.
The company has invested £30m in its workforce, which will boost the number of staff on checkouts and enhance cleaning at stores, as well as £50m in a store upgrade programme, as reported by .
Most Read
Earlier this year, employees at several Asda superstores staged strikes in response to cuts to working hours, substandard training and management issues.
The supermarket plans to concentrate on "enhancing availability" of products and "driving increased use" of its loyalty app, Asda Rewards.
It remains uncertain whether these changes will yield positive results in the second half of the year.
Asda co-owner, Mohsin Issa, stated: "As we move forward, we remain committed to maintaining our value credentials, enhancing the product offer, and executing our long-term growth strategy to build an even stronger Asda for our customers and communities."
This update follows two months after Mohsin Issa's brother Zuber left Asda, selling his 22.5 per cent stake to TDR Capital to focus on his petrol forecourts business.