Summary
Asda, one of the UK's largest supermarkets, has been losing customers to its competitors. Sales decreased by 4.2% over a 12-week period at the end of 2025, and the company faces challenges due to a high level of debt and market changes.
Key Facts
- Asda is the UK's third-largest supermarket chain.
- Sales at Asda fell by 4.2% during a 12-week period ending December 28, 2025.
- Other major UK supermarkets reported sales increases during the same period.
- The Issa brothers and TDR Capital bought Asda in 2021 using a debt-financed deal.
- Rising inflation and interest rates have increased the cost of Asda's debts.
- Management turnover and store staffing cuts have led to operational issues.
- Asda faces competition from budget chains like Aldi and Lidl.
