Asda Reports 5.9% Q1 Sales Drop Despite Price Cuts, Growth Signs

Asda continues to face declining sales and market share despite efforts to revive the business under chairman Allan Leighton, who has initiated a turnaround strategy focused on aggressive price cuts, improved stock availability, and product range expansion. For the first quarter ending March 2025, Asda reported a 5.9% drop in revenue excluding fuel, with like-for-like sales falling 3.1%, though this marked a modest improvement over the previous quarter. The retailer has reduced prices on around 10,000 items, creating a 3-6% price advantage over traditional supermarkets, and increased stock availability from 90% to 95%. While Asda’s George clothing line and Express convenience stores showed sales growth, overall recovery is expected to be gradual, with meaningful growth unlikely before late 2025 or beyond. Competition remains intense, particularly from Aldi, which is closing the market share gap and expanding significantly across the UK. Leighton remains cautiously optimistic, emphasizing that this is a multi-year plan aimed at creating a sustainable business turnaround rather than quick sales boosts.