Asda Sales Decline UK Market Share to 11.8% Amid Rising Lidl Competition

Asda's sales have declined for the fifth consecutive month, falling 2.6% in the 12 weeks to August 10, 2025, resulting in a reduced market share of 11.8%, down from 12.7% a year earlier and significantly lower than the 15% recorded in 2021. Despite efforts including price cuts, store refurbishments, and supplier negotiations, Asda remains the only major UK supermarket experiencing falling sales, with chairman Allan Leighton emphasizing a cautious, long-term turnaround approach rather than quick fixes. Meanwhile, Morrisons is under pressure as its 8.4% market share is nearly matched by Lidl at 8.3%, with Lidl and Ocado posting the fastest sales growth at 10.7%, signaling a shift toward discounters and online retailers. Tesco continues to dominate the market, increasing its share to 28.4% alongside 7.4% sales growth, while Sainsbury’s and Aldi also reported solid gains. Overall grocery sales grew 4% year-on-year with grocery inflation easing slightly to 5%, and branded goods are making a stronger comeback than own-label products. Consumer trends show a preference for convenience foods, with ready meals and quick-preparation items seeing notable growth, reflecting changing shopper habits amid ongoing economic pressures.