Asda sales fall eases on better availability, prices

Fri, 29th May 2026 14:00

* Q1 like-for-like sales down 0.8% vs down 4.2% ⁠in Q4

* Asda expects to build on progress in quarter

* To revamp online offer with Ocado partnership

* Asda still losing market share to rivals

LONDON, May 29 (Reuters) - British supermarket group Asda reported another fall in quarterly underlying ⁠sales, though the pace of decline eased, aided ⁠by improved product availability and investment in some price cuts.

Earlier on Friday, Asda said it had struck a partnership with technology firm Ocado to overhaul its online business as it seeks to stem market ‌share losses to industry leader Tesco, number two Sainsbury's and discounters Lidl and Aldi.

Asda, majority owned by private equity firm TDR Capital, said its like-for-like sales fell 0.8% year-on-year - or down 1.3% adjusted for the timing of Easter - in the first quarter to March 31.

IMPROVING PACE OF DECLINE

That compares to a 4.2% ‌fall in the fourth quarter of 2025 - a year that saw Asda's core profit slump 33%.

First quarter total ‌revenue, excluding fuel, was £5.0 billion ($6.7 billion), down 1.5% year-on-year.

“This progress is due to the stabilisation of our core systems, which has enabled us to deliver ongoing improvements in availability, price and customer satisfaction," Allan Leighton, Asda’s executive chairman who rejoined the group in ‌2024, said.

Asda said it expected to build on the quarter's progress.

However, industry data, published on Wednesday showed Asda's sales fell 3.0% in the 12 weeks ⁠to May ⁠17, with its market share at 11.5%, down 60 ‌basis points on the year.

Analysts say Asda has been hampered by the cost of servicing debt taken on when Mohsin and Zuber Issa and TDR bought 90% ‌of the group from Walmart in a £6.8 billion deal in 2021. Walmart retains a 10% stake.

Asda said all debt maturities are addressed through to 2028. ($1 = 0.7449 pounds)