- Around 9,500 salaried Asda employees will receive a thank-you bonus.
- Some teams missed targets but will still receive part of their bonus.
- The payout comes as the retailer continues a multi-year turnaround effort.
Asda is handing out bonuses to thousands of employees even though parts of the business failed to meet performance targets during its ongoing turnaround effort.
The supermarket has informed around 9,500 salaried workers, including head office employees and senior store managers, that they will receive a thank-you bonus in their March pay packet.
According to an internal memo sent to staff and reportedly seen by a news report, Asda chairman Allan Leighton said the payments were intended to recognise the work carried out by employees during what he described as a challenging year for the company.
All salaried staff who joined the business before October 2025 are expected to receive the bonus. Workers who met their annual objectives will receive the full amount linked to their role, while those who fell short of targets will still receive just over a quarter of their potential payout.
Leighton reportedly acknowledged that not every part of the business met its targets.
“Not all metrics were fully achieved,” he reportedly said in the memo, adding that staff had still shown “significant effort, commitment and progress under challenging circumstances”.
A morale boost after a turbulent year
The decision to pay bonuses appears to come as Asda attempts to steady morale inside the business after a turbulent period for the supermarket chain.
In 2024, the company scrapped bonus payments for some managers, citing what it described at the time as a difficult year. The move reportedly caused frustration among staff and raised concerns from recruitment experts about the potential impact on employee motivation.
The latest payments appear to signal a shift in tone as the retailer pushes ahead with its recovery strategy.
Leighton reportedly told staff that although some targets had been missed, it was important to recognise the progress made as Asda works through a longer-term rebuilding process.
“While we didn’t meet all of our objectives, it’s important to pause and acknowledge what we achieved and the important steps we’re taking to rebuild our great business,” he reportedly said.
Sales pressures still weigh on the retailer
The bonus decision comes against the backdrop of a difficult year for the company in the highly competitive UK grocery market.
Asda’s market share fell from 13.7 per cent to 12.6 per cent between March 2024 and March 2025. More recent industry data suggests the retailer’s share has slipped further to 11.5 per cent.
Figures from Worldpanel show Asda’s sales declined 2.6 per cent in the 12 weeks to February 22 compared with the same period a year earlier.
However, the decline appears smaller than in earlier months, when sales had been falling by as much as 5.8 per cent year on year, which some observers suggest could signal early signs of stabilisation.
Leighton reportedly said the data suggested the business may be beginning to make gradual progress.
“I’m just looking for signs of progress, and there are signs of progress,” he reportedly said.
He also cautioned that turning the supermarket around would take time. “This is a three to five year turnaround. You do not turn these things around in a short period of time,” he reportedly added.
Leighton returned to lead Asda in 2024, having previously overseen a major revival of the supermarket in the 1990s. Since returning, he has introduced several changes to management and launched initiatives aimed at improving communication with staff, including a feedback scheme known internally as “Tell Allan”.
A spokesperson for Asda reportedly said the bonus payments had been well received by employees and were intended to recognise the effort staff had made during the first year of the company’s recovery programme.
