Asda loses ground on rivals as turnaround efforts stall
Asda’s turnaround efforts have stalled after the discount supermarket was the UK’s only major grocer where sales fell last month. The supermarket chain posted £4bn in total takings in the 12 weeks to 1 November, 0.5 per cent lower than the same time a year ago, according to Worldpanel. The company’s share of the grocery [...]
Asda's turnaround efforts have hit a roadblock as the discount supermarket chain's sales fell last month, marking the only UK major grocer to experience a decline in sales. In the 12 weeks leading up to November 1st, Asda reported £4bn in total sales, a 0.5% decrease compared to the same period a year earlier, according to Worldpanel.
The company's market share decreased from 11.6% to 11.3% within the same timeframe. Competitors saw growth in customer demand, with Lidl experiencing a 6.6% increase and Morrisons growing by 2%. All supermarket chains, except Iceland, which maintained steady sales, reported year-on-year increases. Asda's struggling sales have jeopardized the turnaround plans initiated just months after CEO Allan Leighton declared the company in the "footsteps of recovery."
The company, owned by private equity firm TDR Capital, has been grappling with a £3bn debt burden as it attempts to cut costs. The decline in sales follows the appointment of former Morrisons CEO David Potts as Asda's new chief executive. Despite Potts' accolades and admiration for the brand, the company's sales have now declined, reminiscent of the challenging times faced before his appointment.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
