Asda Eases Quarterly Sales Decline with Better Prices and Improved Stock
Asda's Financial Performance and Strategic Initiatives
By James Davey
LONDON, May 29 (Reuters) - British supermarket group Asda reported another fall in quarterly underlying sales, though the pace of decline eased, aided by improved product availability and investment in some price cuts.
Online Business Overhaul and Market Competition
Earlier on Friday, Asda said it had struck a partnership with technology firm Ocado to overhaul its online business as it seeks to stem market share losses to industry leader Tesco, number two Sainsbury's and discounters Lidl and Aldi.
Quarterly Sales Figures and Revenue
Asda, majority owned by private equity firm TDR Capital, said its like-for-like sales fell 0.8% year-on-year - or down 1.3% adjusted for the timing of Easter - in the first quarter to March 31.
Improving Pace of Decline
IMPROVING PACE OF DECLINE
That compares to a 4.2% fall in the fourth quarter of 2025 - a year that saw Asda's core profit slump 33%.
First quarter total revenue, excluding fuel, was £5.0 billion ($6.7 billion), down 1.5% year-on-year.
Executive Commentary and Future Outlook
“This progress is due to the stabilisation of our core systems, which has enabled us to deliver ongoing improvements in availability, price and customer satisfaction," Allan Leighton, Asda’s executive chairman who rejoined the group in 2024, said.
Asda said it expected to build on the quarter's progress.
Market Share and Debt Management
Recent Market Share Data
However, industry data, published on Wednesday showed Asda's sales fell 3.0% in the 12 weeks to May 17, with its market share at 11.5%, down 60 basis points on the year.
Debt and Ownership Structure
Impact of Debt on Performance
Analysts say Asda has been hampered by the cost of servicing debt taken on when Mohsin and Zuber Issa and TDR bought 90% of the group from Walmart in a £6.8 billion deal in 2021. Walmart retains a 10% stake.
Debt Maturities
Asda said all debt maturities are addressed through to 2028.
($1 = 0.7449 pounds)
(Reporting by James Davey; Editing by Kate Holton)
