Asda sales fall eases on better availability, prices

Tesco

29/05/2026 14:00

Q1 like-for-like sales down 0.8% vs down 4.2% in Q4
Asda expects to build on progress in quarter
To revamp online offer with Ocado partnership
Asda still losing market share to rivals
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.
Earlier on Friday, Asda said it had struck a partnership with technology firm Ocado OCDO.L to overhaul its online business as it seeks to stem market share losses to industry leader Tesco TSCO.L, number two Sainsbury's SBRY.L and discounters Lidl and Aldi.
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
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.
“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.
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.
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 WMT.O in a £6.8 billion deal in 2021. Walmart retains a 10% stake.
Asda said all debt maturities are addressed through to 2028.    

($1 = 0.7449 pounds)

UPDATE 3-UK grocer Asda taps Ocado to revamp online business nL4N4260IC
 (Reporting by James Davey; Editing by Kate Holton)
 ((james.davey@thomsonreuters.com))