{"id":49729,"title":"Asda and Morrisons Continue to Struggle in Competitive Grocery Market","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-02-04T08:37:37+00:00","modified":"2026-02-04T07:39:12+00:00","canonical_url":"https://stockmark.it/asda-and-morrisons-continue-to-struggle-in-competitive-grocery-market/","markdown_url":"https://stockmark.it/asda-and-morrisons-continue-to-struggle-in-competitive-grocery-market.md","json_url":"https://stockmark.it/asda-and-morrisons-continue-to-struggle-in-competitive-grocery-market.json","category":"Private equity","categories":["Private equity","Retail"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/asda-1.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"Asda and Morrisons, two of Britain’s largest supermarket chains, are finding it increasingly difficult to regain momentum in a fiercely competitive grocery market, following their acquisition by private equity firms laden with debt. Recent data highlights a concerning trend for both brands.\n\nAsda’s market share has diminished, dropping from 12.3 per cent to 11.5 per cent year-on-year within the 12 weeks leading to January 25. This decline coincides with a 3.7 per cent decrease in sales during the same period. Morrisons has also suffered a slight dip in market share, from 8.5 per cent to 8.4 per cent, despite witnessing a 2.5 per cent increase in sales.\n\nThe financial burdens set in motion by their leveraged buyouts are becoming increasingly apparent. Asda was acquired by the Issa brothers and TDR Capital for £6.8 billion in October 2020, while Morrisons was purchased by Clayton, Dubilier & Rice for £7 billion in October 2021. These transactions have burdened both companies with significant debts, a challenging situation exacerbated by rising inflation and intensifying competition in the market.\n\nA representative from Morrisons asserted that their growth in convenience is not fully captured in the Worldpanel market share data, suggesting the real picture may be more favourable than represented. Conversely, an Asda spokesperson indicated improved sales figures on a shorter four-week basis, noting a decline improvement from 4.2 per cent to 2.3 per cent.\n\nIn contrast, discount retailers such as Aldi and Lidl are gaining substantial ground. Lidl recorded a market share increase to 7.7 per cent with sales rising by 10.1 per cent compared to the same period last year. Aldi’s market position remained steady at 10.1 per cent, although it also reported a 3.8 per cent sales increase.\n\nMainstream retailers have benefitted from the struggles of Asda and Morrisons. Sainsbury’s and Tesco each increased their market shares to 16.2 per cent and 28.7 per cent, respectively. Sainsbury’s saw a 5.3 per cent increase in spending, while Tesco’s sales rose by 4.4 per cent.\n\nOverall, the landscape of Britain’s grocery market appears to be shifting. With grocery price inflation leading to greater consumer focus on value, the dominance of private equity-owned supermarkets is becoming increasingly precarious."}