Asda faces mounting pressure after reporting its weakest Christmas performance in nearly a decade. Sales plummeted by 5.8%, leading to a market share decline and raising questions about the supermarket's recovery strategy.
Asda ’s recovery journey has hit another stumbling block, as the supermarket giant reported its weakest festive performance in nearly a decade. New data from analyst firm Kantar revealed that Asda ’s sales during the crucial 12-week Christmas period fell by 5.8 per cent, the steepest drop among all major UK supermarkets. Spending in Asda stores fell to £4.59billion, a sharp decline from £4.87billion during the same period last year, Mirror reports.
The chain, which is the UK’s third-largest supermarket, last experienced a Christmas slump of this magnitude in 2015 under former CEO Andy Clarke. This latest blow has also seen Asda’s market share drop from 13.5 per cent to 12.5 per cent in December. The disappointing figures come as Allan Leighton, Asda’s newly appointed chairman, faces mounting pressure to reverse the chain’s fortunes. Leighton, who stepped into the role in November 2022, has pledged to “restore Asda’s DNA” by focusing on cutting prices to attract more customers. Asda has been grappling with challenges since its acquisition by private equity firm TDR Capital and the Issa brothers, Mohsin and Zuber, in February 2021. The sudden departure of its former CEO, Roger Burnley, in 2021 left a leadership void that further complicated the chain’s recovery efforts. Leighton has already warned that turning Asda around could take up to five years, with his immediate priority being the recruitment of a strong chief executive. Mohsin Issa, the co-owner and boss of Asda, used to run the chain's daily operations but resigned from his position in September of last year. Despite the grim Christmas results, Asda has shown signs of slight improvement in recent weeks. Preliminary figures from Kantar suggest the chain experienced a modest 0.4 per cent sales rise in the four weeks leading up to December 29. Clive Black, of Shore Capital, said the latest figures were “dreadful” for Asda, adding: “The magnitude of the market share loss year on year also speaks volume
Asda Supermarket Christmas Sales Financial Performance Recovery Strategy
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
When the Boxing Day 2024 sales start and best pre-Christmas sales already liveWith Christmas Day now just over a week away, we're rounding up everything you need to know about the Boxing Day sales - including when they'll start, who will be taking part and where you can shop the best deals right now
Read more »
British Retail Sales Rise Despite Clothing SlumpDespite a decline in clothing sales, British retail sales saw a modest increase in November 2024.
Read more »
Zara owner sees sales growth slow at start of Christmas seasonInditex said sales growth had slowed to 9% in the five weeks to December 9 from 10.5% in the first nine months of 2024.
Read more »
Supermarkets 'ban Christmas pudding sales' before 10am over Scotland alcohol lawsAn elderly couple were reportedly told on recent trip to Waitrose in Newton Mearns that buying a tiramisu before 10am was 'unlawful', because it was before 10am.
Read more »
Don't Miss These Sales After ChristmasThe end of year sales can be a great opportunity to save money for the year ahead. Many retailers offer discounts on a wide range of items, from toys to clothing to home decor. This article highlights some of the best sales to watch out for after Christmas, including those at Boots.
Read more »
Don't Miss These Post-Christmas SalesThe end of year sales often offer great deals on various items, making it a perfect time to save money. From beauty products to clothing and toys, many stores have discounts after Christmas to clear out festive stock. Don't wait for January sales, shop savvy on Christmas Day itself or Boxing Day to snag the best bargains.
Read more »