Latest news with #AllanLeighton
RTÉ News
3 days ago
- Business
- RTÉ News
UK supermarket Asda seeing 'green shoots' of recovery
The boss of British supermarket Asda said he was seeing "green shoots" of recovery after the group slowed the rate of its sales decline in its first quarter, helped by lower prices and better product availability. Asda, Britain's third largest food retailer after Tesco and Sainsbury's, said like-for-like sales in the four months to April 30, adjusted to include Easter trading, declined by 3.1% - an improvement on the 4.2% fall in the previous quarter. Asda said it had seen further improvements in May. "Although we are seeing the green shoots in sales performance, there is a long way to go," executive chairman Allan Leighton said. Private equity firm TDR Capital, Asda's majority owner, brought Leighton back to the grocer in November, more than two decades after he served as CEO and turned the chain around before selling it to Walmart. In March, Leighton warned his plan to be 5% to 10% cheaper than rivals would "materially reduce" profit. His comment hit the shares of Tesco and Sainsbury's on fears of a price war. Asda said it had cut the prices of about 10,000 products, more than a third of its range, establishing a price gap of 3% to 6% over its full-service supermarket rivals. It said product availability had increased from 90% to 95% since January, while customer satisfaction had also improved. "People who've been in the industry a long time are amazed at the progress that we've made on availability in a relatively short period of time," Leighton told reporters. Industry data published earlier this week showed Asda's sales fell 3.2% over the 12 weeks to May 18 year-on-year, with the group's market share down 90 basis points to 12.1%.
Scottish Sun
4 days ago
- Business
- Scottish Sun
Asda boss insists supermarket turnaround is on despite sales falling 3.1% and sends appeal to Sun readers
The chairman has reintroduced Asda prices on 10,000 products and his discounting effectively started a fresh price war IT ASDA GET BETTER IT ASDA GET BETTER Asda boss insists supermarket turnaround is on despite sales falling 3.1% and sends appeal to Sun readers ASDA sales fell 3.1 per cent in the four months to the end of April — but its chairman insists the turnaround is on. And Allan Leighton urged Sun readers to come back to see the UK's third largest grocery chain's revitalised stores. Advertisement 4 Asda sales fell 3.1 per cent in the four months to the end of April, pictured boss Allan Leighton Credit: Asda 4 Supermarket figures released earlier this week showed Asda's share of the grocery industry has shrunk to 12.1 per cent He told The Sun: 'We've lowered prices and improved availability of products. 'We've got a long way to go to be back to where we were, but we're getting there.' The veteran boss, now 72, returned to Asda six months ago to try to turn around the business. It has struggled since a £6.8billion buyout by Blackburn brothers Mohsin and Zuber Issa and private equity firm TDR Capital in 2021. Advertisement TDR bought out Zuber Issa's stake last June. Leighton was last chief exec of the chain in 2000, but left to become chairman of Royal Mail and later the Co-op. Since returning, he has reintroduced Asda prices on 10,000 products and his discounting effectively started a fresh price war. His aim, he said, is to offer goods at around 7 per cent lower than rivals, but said Asda has so far hit only the 3 per cent mark. Advertisement His other main focus has been on improving availability of products, making sure the goods people want are on the shelves. Availability was less than 90 per cent when he returned last November. Sainsbury's scraps in-store changing rooms leaving shoppers furious But his changes have now improved that to 96 per cent. Mr Leighton admitted: 'We've started our work by looking after our existing customers. They lost trust because pricing was poor and availability was poor.' Advertisement Now he wants to start attracting new shoppers and those who switched to another supermarket. His message to Sun readers is: 'If you've not been with us for a while, come have another look.' He said despite his age he is rolling up his sleeves to get the job done and reckons it will take between three and five years. Once he is happy with the turnaround, he said the chain will look for a new chief executive. Advertisement In positive news, sales of the group's George clothing ranges were up 3.5 per cent in established stores. Petrol forecourt and convenience store sales were also up after fuel prices fell. Supermarket figures released earlier this week showed Asda's share of the grocery industry has shrunk to 12.1 per cent. The figure is the lowest since analysts Kantar started collecting data in 2011. Advertisement German discount chain Aldi, in fourth with an 11.1 per cent share, is now breathing down its neck — putting Asda's position as the UK's number three under pressure. New car sales go up a gear NEW car sales in the UK grew three per cent last year, according to figures from Auto Trader. The expansion was driven by sales of company or 'fleet' vehicles. 4 New car sales in the UK grew three per cent last year Credit: Getty Advertisement But sales to consumers fell four per cent over the year. And the number of vehicles manufactured in the UK fell last month to the lowest April figure for more than 70 years. Factories hit by trade tariffs and the timing of Easter turned out just 59,203 vehicles in the month. But UK new car sales could be boosted by the international trade war, reckons Auto Trader boss Nathan Coe. Advertisement He said Britain could benefit if higher import duties mean it becomes cheaper for global manufacturers to export vehicles to the UK. He said: 'If it's more expensive to export cars to other countries, it could well be the UK is a place where we find a few more new cars coming this way.' £25billion megapot THE Chancellor has revealed plans to create £25billion pension 'megafunds' which will have to invest in the UK to help fuel economic growth. An industry overhaul will let pension funds consolidate with others. Successful schemes in Australia and Canada see funds invested in infrastructure projects and big business. Rachel Reeves said it would boost people's pension pots with greater investment in clean energy and UK high-growth businesses. Named and shamed on wage PIZZA EXPRESS, Lidl, British Airways and Capita are among firms named and shamed for failing to pay some of their staff the minimum wage. They were on a Government list of 518 employers and businesses found to have underpaid workers over several years. Advertisement 4 British Airways was among firms named and shamed for failing to pay some of their staff the minimum wage Credit: Getty Pay for nearly 60,000 fell short of the national minimum wage, or national living wage, according to the Department for Business and Trade. At outsourcing company Capita, 5,543 workers were underpaid about £208 each on average. It said there were 'inadvertent underpayments' between 2015 and 2021 but it had repaid the money to staff. Advertisement Pizza Express failed to pay about £90 on average to 8,470 workers. The chain said it was a 'historic unintentional technicality, which occurred between 2012 and 2018', and it was quickly rectified. British Airways failed to pay an average of £107 to 2,165 workers. It said it accidentally 'slightly underpaid' some of its cabin crew who joined between 2014 and 2017, but had made backdated payments to those affected. Advertisement Society's 30% leap NATIONWIDE Building Society said profits leapt 30 per cent to £2.3billion in the year to the end of March, during which time it completed the takeover of Virgin Money. The mutual group said it paid out a record £1billion to members in rewards during the year, with more than four million customers handed £100. Nationwide's £2.9billion takeover of Virgin Money made it the UK's second largest mortgages and savings provider. It said integration of the acquisition was 'progressing well' but boss Debbie Crosbie added: 'It's too early to say if there'll be an impact on the workforce.' O'Leary's £84million RYANAIR chief Michael O'Leary is in line for a bonus worth more than £84million after shares in the budget airline hit a value target. Shares closed yesterday above 21 euros for a 28th consecutive day, meeting a goal set in 2019. Mr O'Leary said earlier this month: 'I think we're delivering exceptional value for Ryanair shareholders in an era when Premiership footballers and managers get paid 20 to 25million a year.' To take advantage of the share deal, O'Leary, 64, needs to stay at Ryanair until 2028. Advertisement Chip off the AI block AI chip-maker Nvidia's sales almost doubled in a year, climbing from £16.4billion to £32.7billion. It is the second most valuable listed company in the world, behind Microsoft, but share prices slumped last month owing to Trump's trade war. Ten-pin boiling HOLLYWOOD BOWL has blamed the warm weather for a fall in bookings this spring. The ten-pin bowling chain said it took a short-term hit from March to May — the sunniest spring on record. Its pay bill also bounced up £2.6million to £24.9million following April's minimum wage increases. Profits fell by 9.4 per cent to £28million in the past six months but revenues still rose slightly, as customers spent more per game. Advertisement Boss Stephen Burns said: 'We're well positioned for the key summer holiday period.'
The Sun
4 days ago
- Business
- The Sun
Asda boss insists supermarket turnaround is on despite sales falling 3.1% and sends appeal to Sun readers
ASDA sales fell 3.1 per cent in the four months to the end of April — but its chairman insists the turnaround is on. And Allan Leighton urged Sun readers to come back to see the UK's third largest grocery chain's revitalised stores. 4 4 He told The Sun: 'We've lowered prices and improved availability of products. 'We've got a long way to go to be back to where we were, but we're getting there.' The veteran boss, now 72, returned to Asda six months ago to try to turn around the business. It has struggled since a £6.8billion buyout by Blackburn brothers Mohsin and Zuber Issa and private equity firm TDR Capital in 2021. TDR bought out Zuber Issa's stake last June. Leighton was last chief exec of the chain in 2000, but left to become chairman of Royal Mail and later the Co-op. Since returning, he has reintroduced Asda prices on 10,000 products and his discounting effectively started a fresh price war. His aim, he said, is to offer goods at around 7 per cent lower than rivals, but said Asda has so far hit only the 3 per cent mark. His other main focus has been on improving availability of products, making sure the goods people want are on the shelves. Availability was less than 90 per cent when he returned last November. Sainsbury's scraps in-store changing rooms leaving shoppers furious But his changes have now improved that to 96 per cent. Mr Leighton admitted: 'We've started our work by looking after our existing customers. They lost trust because pricing was poor and availability was poor.' Now he wants to start attracting new shoppers and those who switched to another supermarket. His message to Sun readers is: 'If you've not been with us for a while, come have another look.' He said despite his age he is rolling up his sleeves to get the job done and reckons it will take between three and five years. Once he is happy with the turnaround, he said the chain will look for a new chief executive. In positive news, sales of the group's George clothing ranges were up 3.5 per cent in established stores. Petrol forecourt and convenience store sales were also up after fuel prices fell. Supermarket figures released earlier this week showed Asda's share of the grocery industry has shrunk to 12.1 per cent. The figure is the lowest since analysts Kantar started collecting data in 2011. German discount chain Aldi, in fourth with an 11.1 per cent share, is now breathing down its neck — putting Asda's position as the UK's number three under pressure. New car sales go up a gear NEW car sales in the UK grew three per cent last year, according to figures from Auto Trader. The expansion was driven by sales of company or 'fleet' vehicles. 4 But sales to consumers fell four per cent over the year. And the number of vehicles manufactured in the UK fell last month to the lowest April figure for more than 70 years. Factories hit by trade tariffs and the timing of Easter turned out just 59,203 vehicles in the month. But UK new car sales could be boosted by the international trade war, reckons Auto Trader boss Nathan Coe. He said Britain could benefit if higher import duties mean it becomes cheaper for global manufacturers to export vehicles to the UK. He said: 'If it's more expensive to export cars to other countries, it could well be the UK is a place where we find a few more new cars coming this way.' £25billion megapot THE Chancellor has revealed plans to create £25billion pension 'megafunds' which will have to invest in the UK to help fuel economic growth. An industry overhaul will let pension funds consolidate with others. Successful schemes in Australia and Canada see funds invested in infrastructure projects and big business. Rachel Reeves said it would boost people's pension pots with greater investment in clean energy and UK high-growth businesses. Named and shamed on wage PIZZA EXPRESS, Lidl, British Airways and Capita are among firms named and shamed for failing to pay some of their staff the minimum wage. They were on a Government list of 518 employers and businesses found to have underpaid workers over several years. 4 Pay for nearly 60,000 fell short of the national minimum wage, or national living wage, according to the Department for Business and Trade. At outsourcing company Capita, 5,543 workers were underpaid about £208 each on average. It said there were 'inadvertent underpayments' between 2015 and 2021 but it had repaid the money to staff. Pizza Express failed to pay about £90 on average to 8,470 workers. The chain said it was a 'historic unintentional technicality, which occurred between 2012 and 2018', and it was quickly rectified. British Airways failed to pay an average of £107 to 2,165 workers. It said it accidentally 'slightly underpaid' some of its cabin crew who joined between 2014 and 2017, but had made backdated payments to those affected. Society's 30% leap NATIONWIDE Building Society said profits leapt 30 per cent to £2.3billion in the year to the end of March, during which time it completed the takeover of Virgin Money. The mutual group said it paid out a record £1billion to members in rewards during the year, with more than four million customers handed £100. Nationwide's £2.9billion takeover of Virgin Money made it the UK's second largest mortgages and savings provider. It said integration of the acquisition was 'progressing well' but boss Debbie Crosbie added: 'It's too early to say if there'll be an impact on the workforce.' O'Leary's £84million RYANAIR chief Michael O'Leary is in line for a bonus worth more than £84million after shares in the budget airline hit a value target. Shares closed yesterday above 21 euros for a 28th consecutive day, meeting a goal set in 2019. Mr O'Leary said earlier this month: 'I think we're delivering exceptional value for Ryanair shareholders in an era when Premiership footballers and managers get paid 20 to 25million a year.' To take advantage of the share deal, O'Leary, 64, needs to stay at Ryanair until 2028. Ten-pin boiling HOLLYWOOD BOWL has blamed the warm weather for a fall in bookings this spring. The ten-pin bowling chain said it took a short-term hit from March to May — the sunniest spring on record. Its pay bill also bounced up £2.6million to £24.9million following April's minimum wage increases. Profits fell by 9.4 per cent to £28million in the past six months but revenues still rose slightly, as customers spent more per game. Boss Stephen Burns said: 'We're well positioned for the key summer holiday period.'
Yahoo
4 days ago
- Business
- Yahoo
Asda market share hits record low as crisis deepens
Asda's share of the grocery market has fallen to a record low in a fresh setback for the struggling supermarket. New figures show that Asda's market share fell to 12.1pc in the 12 weeks to May 18, which is the lowest level since Kantar started collecting data in 2011. That is despite Allan Leighton launching a price war to kickstart turnaround efforts at Asda, which has lost swathes of customers to the likes of Tesco, Aldi and Lidl. Lower prices helped the retailer record its best performance in a year, although this did not prevent sales from falling by 3.2pc over the period. This means that Asda was once again the only supermarket to record a drop in sales in the 12 weeks, with the likes of Lidl and Ocado posting growth of 10.9pc and 14.9pc respectively. Even Marks & Spencer and the Co-op reported improved grocery sales despite suffering cyber attacks. Asda has struggled ever since it was bought by private equity firm TDR Capital and the Issa brothers in 2021, as the debt-fuelled £6.8bn takeover hindered attempts to keep up with lower-priced competitors. The supermarket chain has also been left without a permanent chief executive when Roger Burnley stood down in August 2021. Mr Leighton was drafted in as chairman last year to revive the retailer's fortunes, since ploughing investment into increasing store opening hours while also reintroducing Rollback – its price-cutting campaign. However, the retail veteran faces an uphill battle, as data shows that Asda's market share has fallen from 15.0pc in 2021 to 12.3pc. Meanwhile, the latest figures also revealed that grocery price inflation is now at its highest level since early 2024, hitting 4.1pc over the period. It comes after retailers warned they would have to increase prices as a result of Labour's Budget, which hit them with increased National Insurance (NI) contributions and lowered the threshold at which those contributions are paid. The tax raid kicked in last month. Fraser McKevitt, head of retail and consumer insight at Kantar, said: 'This latest jump in grocery price inflation takes us into new territory for 2025. 'Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3pc to 4pc point as people notice the impact on their wallets more. 'Own label lines are ones to watch, with premium own label, in particular, being the fastest growing part of the market since September 2023.' Total grocery sales grew by 4.4pc in May, Kantar added, while Ocado was the fastest-growing retailer year on year with sales growth of 14.9pc. Elsewhere, both Lidl and Aldi's market share reached fresh highs, hitting 8.1pc and 11.1pc respectively. Tesco also grew its share to 28pc, while Sainsbury's slipped from 15.3pc to 15.1pc. An Asda spokesman said: 'We have a clear plan to drive improvements in key areas like price, availability and service underpinned by a material investment in the business. 'The Kantar figures highlight Asda had its best performance since last May, which demonstrates that customers are responding positively to the changes we have made.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Daily Mail
4 days ago
- Business
- Daily Mail
Asda boss shrugs off plunging sales and vows to press ahead with price war
The boss of Asda shrugged off tumbling sales as he cranked up a price war, and said he doesn't care about market share. Executive chairman Allan Leighton said his mission was seeing 'green shoots' after it slashed the price of thousands of products and improved stocks. Sales at the beleaguered supermarket chain, whose George at Asda fashion range is modelled by Yasmin Le Bon, plunged 5.9 per cent to £5billion for the three months to March 31. The news came a day after industry data from market researchers Kantar showed Asda's share of the market fell to 12.1 per cent – its lowest on record going back to 2011. But retail veteran Leighton, 72, said: 'Market share today means nothing to me. We're in a turnaround situation, restoring a business to an enduring proposition. 'That will take time. We're building a business for the future, not for the next five weeks.' He blamed the decline on a lack of price competitiveness and having 'had the worst availability in the industry'. But 'real progress' had been made since he became chairman in November, and it now has the 'best pricing position'. The grocer aims to be 7-10 per cent cheaper than rivals within the next year. Asda's market share has shrunk since its takeover four years ago by private equity firm TDR and the billionaire Issa brothers.
