In a significant blow to the UK’s retail landscape, Asda’s market position has deteriorated further as recent data reveals a concerning decline in its grocery market share. The supermarket chain, operating under private equity ownership, witnessed a 3.5 per cent reduction in sales during the 12-week period ending 2 November, causing its market share to contract from 13.1 per cent to 12.1 per cent.
The struggling retailer’s chairman, Lord Rose of Monewden, openly acknowledged the company’s shortcomings, stating they “have not been as sharp on our trading stance as we should have been.” The admission comes as NIQ market research data highlights parallel declines among competitors, with Morrisons, the Co-op, and Waitrose each experiencing 0.1 percentage-point reductions in market share.
The supermarket’s challenges stem from its 2021 acquisition by TDR and the Issa brothers in a £6.8 billion leveraged buyout from Walmart. This substantial debt burden has hampered Asda’s ability to compete effectively with budget retailers Aldi and Lidl, while also losing ground to traditional rivals Tesco, Sainsbury’s, and Morrisons.
The retailer’s troubles intensified this week as Morrisons successfully recruited Andrew Staniland, who had been slated to join Asda as vice-president. Staniland, previously group buying director at Iceland and The Food Warehouse, represents a significant loss for Asda’s executive team.
The Leeds-based retailer remains without a permanent chief executive following Mohsin Issa’s September departure from his executive leadership role. The company has pledged to invest an additional £13 million in store hours during the fourth quarter, aiming to enhance customer experience during the crucial ‘Golden Quarter’.
EG Group, the petrol stations business founded by the Issa brothers, reported positive results with an 8 per cent increase in underlying earnings to $300 million in the third quarter, driven by strong grocery and merchandise sales. The group has made progress in debt reduction following the £228 million sale of its British petrol stations business.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.