Asda posts first sales growth in two years under new leadership

Asda has recorded its first period of sales growth in more than two years, a development the company describes as a significant step in its ongoing turnaround. The discount supermarket reported that like-for-like sales, excluding fuel, increased by 0.2 per cent during the seven weeks to mid-August. Within this period, like-for-like food sales rose by 0.7 per cent, signalling a modest but notable shift in consumer behaviour towards the retailer.

This improvement comes after a challenging period in which Asda lost significant market share to intense competition from German discounters Aldi and Lidl. The grocer has struggled to boost sales volume in recent years, leading to a call for renewed leadership. In November 2024, Allan Leighton was appointed chairman to lead the recovery. Leighton previously served as chief executive during the company’s 1990s peak and oversaw its sale to Walmart. He characterised the recent sales growth as a major milestone, attributing it to 18 months of focused effort to strengthen the company’s proposition, improve pricing, and enhance the overall shopping experience.

Despite the positive recent trend, Leighton cautioned that the business remains in the early stages of recovery. He noted that further work is required to build a stronger long-term business. Financial data for the second quarter of 2026 showed that like-for-like sales had fallen by 2.3 per cent, with food sales dropping by 1.9 per cent. However, total revenue for that quarter increased by 0.4 per cent to 6.5 billion pounds. Growth has accelerated in recent weeks, with year-on-year gains reaching 2.1 per cent.

Market share figures from Worldpanel by Numerator indicate that Asda’s share has stabilised at 11.5 per cent. Meanwhile, Aldi and Lidl have moved into the top five positions, surpassing Morrisons with shares of 10.8 per cent and 8.8 per cent respectively. Michael Gleeson, the finance chief, acknowledged that fragile consumer confidence and a challenging economic backdrop continued to weigh on household budgets during the second quarter. Nevertheless, he stated that continued investment in price and customer experience is driving steady progress.

Looking ahead, Asda plans to launch a pilot for its partnership with home delivery firm Ocado before the end of 2026. The company will also roll out a collaboration with Amazon Ad Services later this year to provide a more personalised online shopping experience. Since its acquisition by private equity firm TDR Capital in 2021, Asda has managed a substantial debt load. Net debt decreased from 4.1 billion pounds to 3.5 billion pounds in the year to December 2025, although the pre-tax loss widened by 65 per cent to 989 million pounds in the same period.