ASDA has reported its worst Christmas sales since 2015, with a 5.8 per cent decline during the crucial festive period.
Spending in Asda stores fell from £4.87bn to £4.59bn in the 12 weeks to 29 December 2024, marking a significant setback for the retailer, according to data from analyst firm Kantar, cited by The Telegraph.
The decline reduced Asda’s market share to 12.5 per cent, down from 13.5 per cent a year earlier.
Meanwhile, Aldi’s share grew slightly from 9.9 per cent to 10 per cent, further narrowing the gap between the two competitors.
Larger rivals Tesco and Sainsbury’s strengthened their positions, with Tesco’s market share rising to 28.5 per cent and Sainsbury’s increasing to 16 per cent, the newspaper reported.
The figures come as Allan Leighton, Asda’s new chairman, faces the challenge of reversing years of decline following the supermarket’s takeover by TDR Capital and the Issa brothers in 2021. Leighton, who replaced Lord Rose in November, aims to "restore Asda’s DNA" through measures such as price reductions.
Despite the decline, unpublished Kantar data reportedly indicates a 0.4 per cent rise in sales during the four weeks leading to 29 December. However, Leighton has said that reviving Asda’s fortunes could take up to five years.
The retailer has also been without a permanent CEO since Roger Burnley’s departure in 2021, with co-owner Mohsin Issa stepping down from daily operations in September.
Clive Black of Shore Capital, according to The Telegraph, described the results as "dreadful" and emphasised the need for a stronger executive team to stabilise the business.
An Asda spokesperson stated: “We are focused on providing great value for hard-working families,” highlighting a January price reduction of 26 per cent on thousands of products.
Grocery price inflation reached 3.7 per cent in December, the highest level in 10 months, contributing to challenges for UK supermarkets.
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