Asda Finally Reports Sales Growth Again — But Barely
Asda has reported its first sales growth in over two years. Sales at its existing stores (not counting fuel) rose 0.2% in the three months ending June 2026. The Guardian
That number is tiny, but it reverses a 2.3% drop in the previous quarter and ends a losing streak going back to early 2024. "Sales growth" here means like-for-like sales, which tracks revenue at stores that have been open for at least a year, so you can see whether the business is actually improving rather than just opening new locations. Asda, the UK's third-biggest supermarket, had been posting negative results quarter after quarter, including a 2.8% drop in Q3 2025. Back then, Executive Chairman Allan Leighton told investors not to expect sales to return to earlier levels. The quarter before that, Q2 2025, was also a decline of 0.2%, described at the time as a fourth straight quarter of smaller declines, down 2.9% from Q1 2025. The Guardian Asda Newsroom Asda Newsroom
Leighton, who came back to Asda in November 2024 after a 20-year absence, said the improvement came from lower prices, more customers, and better online sales. The quarter also benefited from Asda's computer systems becoming more stable after a costly switch away from technology used by its former owner, Walmart. Since the Issa brothers and the investment firm TDR Capital bought Asda in 2020 for £6.8bn (TDR now controls it), the chain has dealt with falling sales and profits, a large debt pile, and nearly £1bn spent fixing those computer systems. The Guardian
The growth was also narrow. Food sales at existing stores rose 0.7%, but clothing and other non-food items sold less. Leighton blamed the timing of the late August bank holiday for hurting clothing and general merchandise. Food prices have also been rising again in 2026 because a hot, dry summer damaged crops like tomatoes and cucumbers. Higher prices can make sales figures look better even if customers are not actually buying more. The Guardian
Asda has also struck a deal with Ocado, an online grocery specialist, to bring in new technology for its website and delivery systems starting next year. This suggests Asda's leaders believe their online shopping operation has a deeper, long-term problem, not just a temporary dip. The Guardian
The competitive picture leaves little room to celebrate. Aldi, the discount supermarket, is now less than one percentage point behind Asda in UK market share and is still growing faster. That threatens Asda's spot as the third-largest chain. A 0.2% improvement, even one that ends a two-year slide, does not on its own close that gap. The real question is whether Asda can speed up its growth before Aldi overtakes it completely. The Guardian
The broader context here is a company squeezed on multiple sides: debt from its 2020 buyout, the cost of overhauling its computer systems, and a fast-growing rival gaining ground from below. Leighton's plan depends on lower prices, better online shopping through the Ocado deal, and stable technology all working together over time. This first positive quarter shows the plan might be working. It does not yet prove Asda can hold its place in the market. Getting from a 0.2% gain to steady, believable growth while Aldi surges and debt weighs on the business is where the real challenge lies. The Guardian
