Asda in the ‘foothills of recovery’ as sales return to growth
Asda has returned to sales growth for the first time in two years, with like-for-like sales, excluding fuel, edging up 0.2% in the first seven weeks of its third quarter.
The supermarket said this was a result of the progress made under its Formula for Growth plan.
Subscribe to TRBSo far in the third quarter, revenue including fuel is up 2.1%, while like-for-like food sales have increased by 0.7%.
This follows second quarter revenue, adjusted for Easter timing, rising by 0.4% to £6.5 billion. However, like-for-like sales were down 2.3%, with food like-for-likes down 1.9%.
Asda said the improving performance has been driven by a stronger customer offer, including upgraded fresh and frozen ranges, the addition of more than 400 new products, its Rewards loyalty programme being extended to Express stores, and the introduction of the Rewards fuel saver bonus.
Allan Leighton, Asda’s executive chairman, said: “Returning to growth in the current quarter for the first time in more than two years is a major milestone for Asda.
“It reflects 18 months of hard work to strengthen our proposition, improving price, availability and the overall shopping experience. We saw momentum build in Q2 with stable market share, and we’re now seeing that translate into more customers choosing Asda.
“While this progress is encouraging, we are still in the foothills of recovery. There’s still more work to do as we focus on building a stronger business for the long term.”
Leighton was appointed as executive chair in November 2024 with the remit of reviving the supermarket’s fortunes. He previously worked with Asda as chief executive from 1996 to 2001 when he was credited with driving a dramatic turnaround.
