Supermarket chain Asda reporting steady advancement amidst persistently declining sales figures.
Following a challenging period, Asda, the Leeds-based supermarket chain, declared progress in its ongoing transformation efforts, despite a 5.9% slump in revenue (excluding fuel) for the three months culminating on March 31, 2025. This decrease represents a year-on-year decline in comparison to the same period in 2024.
The total revenue for the initial quarter of Asda's financial year stands at £5 billion, while its like-for-like sales, adjusted for Easter and the four months ending on April 30, 2025, showed a 3.1% decline. The retail giant, predominantly owned by TDR Capital, has been grappling with declining sales, market share erosion, and high debt. Consequently, its market share deteriorated from 15% in 2021 to 12.1% in May 2025.
Despite the downward trend, Asda managed to record its best three-month sales performance in a year, according to Kantar's data. This development is attributed to the strategic turnaround initiatives led by returning Chairman Allan Leighton, with a focus on competitive pricing, enhanced product availability, and a broader range of offerings.
When elaborating on Asda's price strategy, the company revealed that over 10,000 products are now available at a lower price, offering a 3-6% price differential in comparison to traditional full-service supermarkets. This has resulted in a striking improvement in product availability, which increased from 90% to 95% since January 2025. Moreover, customer satisfaction has also improved.
Asda's plan for transformation hinges on lowering prices across its entire range and maintaining a price advantage over rivals. The company aims to achieve this objective by the end of 2026. In addition to price focuses, the retail giant seeks to optimize its stores by selling and leasing back around 20 store locations, raising £400 million for investments necessitated by the turnaround.
Michael Gleeson, Asda's Chief Financial Officer, expressed optimism over the company's commitment to price reductions and stated that the strategic move has already resulted in a positive customer response. He emphasized that Asda's steady approach to cash management and a robust balance sheet allows it to sustain its efforts in providing lower prices for customers.
- In the realm of finance, Asda's strategic move to lower prices on over 10,000 products by 3-6% has been designed to maintain a competitive edge in the industry, aiming for a price advantage over rival markets by the end of 2026.
- The retail industry has seen Asda, following a challenging period, implementing industry-leading price strategies to improve customer satisfaction and product availability, with a remarkable increase from 90% to 95% since January 2025, thus investing in its future financial success.
