Supermarket chain Asda faced a 7% decline in sales, as reported by industry experts NielsenIQ (NIQ). Over the last three months, the grocer’s market share dropped from 12.2% to 10.9%, adding to its ongoing challenges since being acquired by billionaire brothers Mohsin and Zuber Issa along with TDR Capital in 2021. Allan Leighton, a veteran chief, was brought back as executive chairman by TDR to spearhead a revival effort given his successful turnaround track record in the 1990s.

Despite announcing its most significant price cuts in 25 years in March, aiming to undercut competitors like Tesco, Sainsbury’s, and Morrisons by 5% to 10%, Asda experienced a substantial decrease in sales. Data from NIQ revealed that Asda was the sole major supermarket to witness a year-on-year sales decline in the last quarter, contrasting with Tesco’s 4.5% growth and Sainsbury’s 5.2% increase. Competition intensified with Aldi closely trailing Asda with a 10.3% market share.

An Asda spokesperson acknowledged the time needed for a complete turnaround but expressed confidence in the strategy and customer proposition, emphasizing improvements in availability and pricing competitiveness. As part of its efforts to attract customers, Asda launched a Christmas advertising campaign featuring The Grinch.

As households prepare to spend £20 billion on Christmas groceries, with an anticipated peak of £5.7 billion next week, Mike Watkins from NielsenIQ highlighted that consumers are seeking affordable options this holiday season, making strategic savings to indulge in treats and festivities in December.