Asda is unlikely to return to growth before the end of the year, according to supermarket chair Allan Leighton, as the retailer continues to face falling sales despite cutting prices and expanding product availability.
Speaking about the chain’s ongoing challenges, Leighton acknowledged signs of stabilisation but cautioned that recovery would take time.
“We have made real progress, but there is a long way to go,” he said. “We are beginning to see green shoots, as the pace of decline has eased compared to previous months.”
Underlying sales at Asda dropped 3.1% in the four months to the end of April, compared to the same period last year. This decline comes even as food inflation has generally helped rival supermarkets boost their revenues.
Asda has been under pressure since its £6.8 billion acquisition in 2021 by the Issa brothers, Mohsin and Zuber, along with TDR Capital. The retailer has faced stiff competition, internal changes, and shifting consumer habits in a volatile grocery market.
Meanwhile, Aldi continues to gain ground, closing the market share gap and recently unveiling major expansion plans across the UK—further intensifying competition in the sector.
Despite increasing stock levels and launching aggressive pricing strategies, Asda has yet to reverse the sales trend. Leighton expressed cautious optimism, pointing to the slowing rate of decline as a positive indicator, though he admitted meaningful growth is unlikely before late 2025.