Business & Finance
Asda records first quarterly sales growth in over two years
The supermarket reported a 0.2% rise in established-store sales, driven by food sales and improved online operations.
The short version
- Asda posted a 0.2% increase in sales at established stores (excluding fuel) for the quarter ending in June 2026, marking its first growth in over two years.
- Executive chair Allan Leighton attributed the turnaround to lower prices, increased store traffic, improved online performance, and stabilized IT systems.
- Growth was driven by a 0.7% rise in food sales, offsetting declines in non-food and clothing lines.
- Leighton urged the government to provide policy clarity in the upcoming autumn budget and refrain from placing additional costs on businesses.
Key facts
- Asda's established-store sales excluding fuel rose 0.2% in the quarter ending in June 2026, recovering from a 2.3% drop in the prior quarter.[The Guardian]
- The quarter marked Asda's first sales growth since the first three months of 2024.[The Guardian]
- Food sales at established stores grew 0.7% during the quarter, whereas clothing and non-food product sales dropped.[The Guardian]
- Private equity firm TDR Capital currently controls Asda following a £6.8bn buyout in 2020 alongside the Issa brothers.[The Guardian]
- Asda has spent nearly £1bn revamping its IT infrastructure following its separation from former owner Walmart.[The Guardian]
What remains uncertain
- Whether Asda will maintain its position as the UK's third-largest grocer remains uncertain, as competitor Aldi continues to expand market share at a faster pace.[The Guardian]
Sources
- Asda returns to growth after more than two yearsThe Guardian - World