Asda Plans £400m Sale of 20 UK Stores to Raise Cash

Asda is planning to sell around 20 of its supermarket stores to raise approximately £400 million as part of a broader turnaround strategy. The retailer intends to sell the properties and then lease them back for about 20 years, a sale-and-leaseback approach commonly used in the retail sector to unlock capital. Property advisor Eastdil Secured has been appointed to manage the sale, which aims to support Asda's investments in pricing, product availability, and store improvements. This move follows the return of former CEO Allan Leighton, who has acknowledged the challenges ahead, including a recent sales decline of 0.8% and a net debt of £3.8 billion. Similar strategies have been employed by other UK supermarket chains like Sainsbury’s and Waitrose to bolster their financial positions. Asda's spokesman emphasized that maintaining a strong freehold property base remains key, but unlocking property value is part of their investment plans.