Asda, a leading supermarket chain, faced a significant setback with a 7% decline in sales, as reported by industry experts NielsenIQ (NIQ). The grocer’s market share in Leeds also decreased from 12.2% to 10.9% in the past three months.
Following its acquisition by billionaire brothers Mohsin and Zuber Issa and private equity firm TDR Capital in 2021, Asda has been striving to overcome challenges. Under the leadership of executive chairman Allan Leighton, the company announced plans to implement its most extensive price reductions in 25 years. The goal is to become 5% to 10% more affordable than key competitors like Tesco, Sainsbury’s, and Morrisons.
Despite these efforts, Asda experienced a sharp sales decline, contrasting with Tesco’s 4.5% sales growth and Sainsbury’s 5.2% increase during the same period. Additionally, discount retailer Aldi is posing a competitive threat to Asda with a market share of 10.3%.
An Asda spokesperson acknowledged the ongoing turnaround process, emphasizing progress in enhancing availability and affordability both online and in-store. The company aims to re-establish itself as the UK’s most budget-friendly traditional supermarket.
To attract customers during the holiday season, Asda launched a Christmas advertising campaign featuring The Grinch. Meanwhile, NielsenIQ predicts households will spend £20 billion on Christmas groceries this year, peaking at £5.7 billion next week.
Mike Watkins from NielsenIQ noted that shoppers are prioritizing affordability this Christmas, being prudent with their expenses to indulge in treats and gifts for their families.
Asda continues to adapt its strategy to meet customer needs and reinforce its position as a cost-effective shopping destination.