Asda posted its first sales growth in two years, ending a period of consecutive declines that saw its market share slip to 11.5 percent. The supermarket reported that like-for-like sales grew by 0.2 percent excluding fuel during the first seven weeks of the period ending August 18. Overall revenue increased by 2.1 percent, with food sales up 0.7 percent. This marks the first time the business has reported growth since the first quarter of 2024, ending more than two years of consecutive sales decline.
Return to growth is ‘psychologically important’
Executive chairman Allan Leighton described the return to growth as “psychologically important” for the business. He noted that the turnaround is a three-to-five-year process, with the company now about a third of the way through that timeline.
“It’s an important milestone for the business. Psychologically for the business to return to growth, that shows progress. All we’re interested in at this moment in time is: Are we progressing?” Leighton said.
The progress, while encouraging, still leaves Asda in the “foothills” of its turnaround plan. Leighton emphasized that a lot of work remains to be done.
“What counts is the day-to-day execution of the basics,” he said. “Availability. ‘Is your pricing right? What are your promos like? What are your colleagues like?’, on a store by store basis. The more consistent we are on that, the better we become.”
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Investment in stores and online
Asda invested in improving 129 of its stores over the past 18 months. There is “another wave of that to come” over the next 18 months, Leighton said. The upgrades included the fresh and frozen sections as part of its Take A Fresh Look campaign, which saw the reintroduction of greengrocer colleagues to stores. The company also reduced the time it takes for fresh produce to get from depots to stores to improve quality.
Leighton acknowledged that Asda had underperformed on online relative to competitors. He stated that this area is “beginning to improve.” The recently announced partnership with Ocado, which comes online in 2027, is expected to be a “step-change” for the company’s online performance.
Recent quarterly performance and market trends
When Asda released its Q3 results alongside the full Q2 figures for April, May and June, the underlying like‑for‑like sales for the quarter fell by 2.3 percent, with food sales down 1.9 percent. Despite those declines, revenue still rose by 0.4 percent, reaching £6.5 billion. The contrast between the short‑term dip and the overall revenue uplift shows how the broader turnaround is beginning to offset earlier weaknesses.
Leighton highlighted that the “gap to the market is reducing.” He pointed to a stabilising market‑share metric, noting that the earlier slide from 13.8 percent to 11.5 percent has now halted. He added that availability across stores is solid and pricing remains competitive, factors that are drawing a larger flow of customers into Asda’s aisles.
By tightening supply chains, especially in the fresh‑produce segment, the retailer has been able to deliver higher‑quality items more quickly. This operational refinement complements the planned store refurbishments and the forthcoming Ocado partnership, creating a multi‑pronged push toward sustained growth.
