Asda returns to growth after more than two years
Summary
Asda, a major UK supermarket, has reported its first sales growth in over two years, with a 0.2% increase in sales at established stores for the quarter ending June. The company credits lower prices, improved online services, and more stable IT systems for this recovery amid strong competition and previous challenges.Key Facts
- Asda’s sales rose by 0.2% in the latest quarter, the first increase since early 2024.
- Sales had previously declined by 2.3% in the prior quarter.
- Improvements include better pricing, more customers, and growth in online shopping services.
- Asda faced past problems with its technology systems after switching from Walmart’s systems, costing nearly £1 billion to fix.
- The supermarket has strong competition from discount chains Aldi and Lidl, with Aldi nearly matching Asda’s market share.
- Asda plans to improve online delivery systems further by partnering with Ocado starting next year.
- Food sales increased by 0.7%, while clothing and non-food items saw a drop in sales.
- Current economic uncertainty and government policies affect shopper confidence and business growth.
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