Latest news with #Rollback
Yahoo
29-05-2025
- 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
Telegraph
29-05-2025
- Business
- Telegraph
‘We've got Everest to climb' in Asda turnaround, admits boss
The chairman of Asda has admitted executives have 'Everest to climb' in turning around performance, as the supermarket revealed a fresh slump in sales. Allan Leighton, who took over late last year, said there was 'much more to do' to win customers back as the grocer recorded a 5.9pc sales decline in the first three months of the year. Asda's sales totalled £5bn in the period, excluding fuel. For the four months to the end of April, sales were down 3.1pc on a like-for-like basis. Mr Leighton, who had previously steered Asda in the late 90s, was brought back to kickstart the supermarket's turnaround drive following an extended period of decline. Earlier this year, he launched a price war against supermarket rivals, pledging to make Asda more competitive. As part of the push, Mr Leighton brought back Asda's price-cutting campaign Rollback. He is also spending more on improving the availability of products in stores and recruiting more staff on the shop floor. However, Mr Leighton has admitted the steps will result in a 'material hit' to profit. On Thursday, Mr Leighton said: 'I describe it as we've climbed Snowden – on availability, on price, we climbed Snowden. We're trying to get to Everest. 'On availability and on price, we have to keep going, and we'll go again until we get to the top of Everest.' The Asda chairman rejected the suggestion that the supermarket needed to move faster, saying efforts would 'go at the same pace'. He added: 'There's real progress but there's a long way to go.' Asda's latest results come just hours after figures from market research company Kantar revealed the supermarket was struggling to win back customers. Market share fell to 12.1pc in the 12 weeks to May 18, which was Asda's lowest figure since Kantar started collecting data in 2011.
Yahoo
08-04-2025
- Business
- Yahoo
Aldi overtakes Asda on food and drink sales as turnaround falters
Aldi has overtaken Asda on food and drink sales in a fresh blow for the British supermarket chain's turnaround plan. The German discounter has nudged ahead of Asda thanks to higher sales of fresh poultry, fish, eggs and fruit in recent weeks, according to figures from Kantar seen by The Telegraph. According to the data, Aldi accounted for 10.6pc of food and drink sales across all supermarkets in the 12 weeks to March 23 – beating Asda's market share, which slipped from 10.5pc to 10.4pc. Aldi previously had a 10.1pc market share for 12 weeks to February 23 before the increase. The figures, which are distributed privately to supermarkets, do not include sales of alcohol, toiletries, household goods or beauty items. Including these, Asda is still the third largest grocer, behind Tesco and Sainsbury's. However, it will be seen as a sign that Aldi is gaining on Asda after years of declines at the British supermarket in the wake of its 2021 private equity takeover. Before it was purchased by TDR Capital and the Issa brothers, Asda held a 14.8pc share of the grocery market. Aldi, meanwhile, has been winning over shoppers because of its low prices. It previously overtook Morrisons as the fourth largest grocer in September 2022. In the unpublished figures from Kantar, Morrisons slipped further down the rankings on food and drink sales. Morrisons sold less food and drink than Lidl in the period, with the German discounter holding a 7.7pc share across supermarkets compared to Morrisons' 7.6pc. The latest figures come as Allan Leighton, Asda's new chairman, seeks to kickstart a turnaround of the supermarket. Last month, he said the plans would include a 'substantive and well-backed programme of investment' in stores, which would allow Asda to slash prices and boost availability of products. Asda said the spending plans would result in a 'material reduction' in profitability, although declined to say exactly how much it would be spending. Mr Leighton has admitted that the company had a lot of ground to make up, saying turnaround efforts would take years. 'I could get the sales up tomorrow by doing a load of promotions – but that is not the answer,' he said. Asda is focusing on improving sales volumes again, which is expected to mean its market share may decline further. This is because it plans to sell items at lower prices than rivals. Earlier this year, Asda announced the return of its 'Rollback' scheme, which was used to drive an upswing in sales in the mid-1990s when Mr Leighton was last in charge at the supermarket. A spokesman for Asda said the Kantar data was 'highly selective and does not include key grocery categories such as alcoholic drinks, pet food, laundry, household products and toiletries'. They added: 'We have a clear plan to deliver outstanding value for our customers and since relaunching Rollback at the end of January we have reduced prices on a third of our entire range. 'This focus on lowering prices for hard-working families is reflected in the latest and most widely followed Kantar data, as Asda inflated behind the discounters and clearly maintained its position as the third-largest supermarket in the UK.' 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
Telegraph
08-04-2025
- Business
- Telegraph
Aldi overtakes Asda on food and drink sales as turnaround falters
Aldi has overtaken Asda on food and drink sales in a fresh blow for the British supermarket chain's turnaround plan. The German discounter has nudged ahead of Asda thanks to higher sales of fresh poultry, fish, eggs and fruit in recent weeks, according to figures from Kantar seen by The Telegraph. According to the data, Aldi accounted for 10.6pc of food and drink sales across all supermarkets in the 12 weeks to March 23 – beating Asda's market share, which slipped from 10.5pc to 10.4pc. Aldi previously had a 10.1pc market share for 12 weeks to February 23 before the increase. The figures, which are distributed privately to supermarkets, do not include sales of alcohol, toiletries, household goods or beauty items. Including these, Asda is still the third largest grocer, behind Tesco and Sainsbury's. However, it will be seen as a sign that Aldi is gaining on Asda after years of declines at the British supermarket in the wake of its 2021 private equity takeover. Before it was purchased by TDR Capital and the Issa brothers, Asda held a 14.8pc share of the grocery market. Aldi, meanwhile, has been winning over shoppers because of its low prices. It previously overtook Morrisons as the fourth largest grocer in September 2022. In the unpublished figures from Kantar, Morrisons slipped further down the rankings on food and drink sales. Morrisons sold less food and drink than Lidl in the period, with the German discounter holding a 7.7pc share across supermarkets compared to Morrisons' 7.6pc. The latest figures come as Allan Leighton, Asda's new chairman, seeks to kickstart a turnaround of the supermarket. Last month, he said the plans would include a 'substantive and well-backed programme of investment ' in stores, which would allow Asda to slash prices and boost availability of products. Asda said the spending plans would result in a 'material reduction' in profitability, although declined to say exactly how much it would be spending. Mr Leighton has admitted that the company had a lot of ground to make up, saying turnaround efforts would take years. 'I could get the sales up tomorrow by doing a load of promotions – but that is not the answer,' he said. Asda is focusing on improving sales volumes again, which is expected to mean its market share may decline further. This is because it plans to sell items at lower prices than rivals. Earlier this year, Asda announced the return of its 'Rollback' scheme, which was used to drive an upswing in sales in the mid-1990s when Mr Leighton was last in charge at the supermarket. A spokesman for Asda said the Kantar data was 'highly selective and does not include key grocery categories such as alcoholic drinks, pet food, laundry, household products and toiletries'. They added: 'We have a clear plan to deliver outstanding value for our customers and since relaunching Rollback at the end of January we have reduced prices on a third of our entire range. 'This focus on lowering prices for hard-working families is reflected in the latest and most widely followed Kantar data, as Asda inflated behind the discounters and clearly maintained its position as the third-largest supermarket in the UK.'
Telegraph
21-03-2025
- Business
- Telegraph
‘Messy and dirty' Asda stores risk turnaround, supermarket warned
Asda's turnaround plan risks failing unless the supermarket drastically improves some of its 'messy' stores, bosses have been warned. Analysts at Shore Capital said a recent visit to Asda stores in Liverpool and Knowsley, Merseyside, showed that 'lots and lots and lots' needed to be done getting its stores up to scratch, as pressure mounts on new chairman Allan Leighton to overhaul the struggling business. They said that one of the stores visited was 'dirty and quite frankly a mess', adding that standards were 'patchy across all outlets'. Photos taken inside Asda's supermarkets showed bare fridges and empty shelves, and a shortage of fresh produce including vegetables and chicken. The analysts described one of the supermarkets visited as having 'quite awful store standards and availability'. It suggested items where Asda had lowered prices were a particular issue, picturing depleted frozen aisles and writing: 'Keeping up with Rollback [Asda's promotional pricing scheme] seems a challenge.' They added: 'We see this as a particular no-no, as to be successful Asda simply has to recruit new customers, a costly process when you do not have product to sell them.' Asda has been battling to stem a continuous decline in sales. Industry data revealed this month that Asda sales were down 5pc in the latest four weeks to Feb 23. It follows years of disappointing performance at the supermarket. Its market share has declined to 12.6pc, compared with 14.8pc when the company was taken over by private equity giant TDR Capital and the Issa brothers in February 2021. Asda brought in Mr Leighton, its former chief executive, to helm the business as chairman in November. It had been previously run by co-owner Mohsin Issa. The retail veteran has been attempting to halt the decline at the business in recent weeks, claiming his efforts will make Asda competitive again. Mr Leighton last week unveiled plans to embark on a spending spree within stores, admitting that the company had been 'struggling'. Analysts at Shore Capital said investment was needed across Asda's stores, not just on prices, 'to stabilise a business that has been somewhat adrift in recent years'. Mr Leighton is planning a 'substantive and well-backed programme of investment', targeted towards lowering prices, improving availability and updating stores. He said this was not about a 'quick fix' for the business. Asda declined to give the scale of the investment, although analysts have suggested it could be as much as £900m over the next three years. The supermarket said the investment would result in a 'material reduction' in profitability. Asda posted pre-tax profits of £180m in 2023 on revenues of £25.6bn. It has not yet published pre-tax figures for 2024. Shore analysts said in their note on Thursday that lower grocery sales and higher costs after the Budget meant that 'Asda's profits were going to notably fall anyhow'. A spokesman at Asda said: 'We're on a journey to make Asda the number one choice again for busy hard-working families. 'Since launching Rollback and investing to put more hours into stores, our price advantage over the traditional big four has widened and we have seen improvements in availability and the shopping experience. This is just the start of a serious long-term commitment to delivering the value our customers demand.'
