Asda Battles Sales Slump as New Chairman Faces Challenges
Asda, the troubled grocer, has reported a 5.2% decline in sales over the past 12 weeks, highlighting the challenges faced by newly appointed Chairman Allan Leighton. The slump has contributed to a decline in Asda's market share to 12.6%, compared to 13.6% in 2024.
Despite efforts to cut prices and improve product availability, Asda continues to lose ground to rivals Tesco and Sainsbury's, which have both posted sales growth. The latest figures reinforce the pressure on Leighton, who has vowed to revive the supermarket's fortunes after taking over from Lord Rose last year.
Leighton has launched a price-cutting program to make Asda more competitive. However, he has warned that it may take several years to turnaround Asda's performance, particularly after its takeover by TDR Capital and the Issa brothers in 2021.
The supermarket remains without a permanent chief executive since Roger Burnley's departure in August 2021. Asda has reportedly relaunched the search for a new leader, recognizing the need for fresh perspectives to address its challenges.
Despite the challenges, Asda remains committed to providing value to customers. A spokesperson stated, "Our focus on providing great value for hard-working families is already making a difference, with sales improving and market share increasing."