Asda has emerged as the only major UK supermarket to record a drop in sales, with its market share slipping to 11.3 per cent in the 12 weeks to 1 November, according to Kantar Worldpanel data.
The supermarket chain posted £4bn in total takings over the period, 0.5 per cent lower than the same time a year ago. Its share of the grocery market slimmed from 11.6 per cent to 11.3 per cent.
Rivals post gains
Customer demand grew at each of Asda's competitors, including a 6.6 per cent increase at Lidl and a two per cent jump at Morrisons. Apart from Iceland, which saw flat returns, all other supermarket chains increased their sales year-on-year.
Lidl strengthened its grip on British consumers in the same period, expanding its market share by 0.4 per cent to 8.6 per cent – the largest gain of any UK supermarket.
Online-only retailer Ocado also extended its upward trajectory, posting its 30th successive period of double-digit growth. Sales increased by 12.3 per cent to £822m, and the company now commands a record market share of 2.3 per cent, up from 2.1 per cent last year.
Turnaround plans under pressure
The sliding figures threaten to derail Asda's revival plans, just months after boss Allan Leighton declared the business was in the "foothills of recovery". The grocer had posted a 0.2 per cent uplift in like-for-like revenue excluding fuel in the seven weeks to mid-August, marking its first positive sales figures in more than two years.
Asda, which is owned by private equity firm TDR Capital, has struggled to keep pace with German discounters Aldi and Lidl while battling to reduce its £3bn debt pile. The chain's return to declining sales follows the appointment of former Morrisons chief executive David Potts as its new boss.
Allan Leighton had been brought back to spearhead the grocer's turnaround, but stepped down to a non-executive role last week with immediate effect. Potts said upon his appointment: "Asda has long been a great business, one I've admired and traded against over many years. The colleagues are remarkable, some of the most passionate I've met.
"The business has made good progress but significant opportunities remain and I'm delighted and very proud to have been asked by Allan to lead the team."
Leighton said: "David has an outstanding record in our industry, his experience is exactly what we now require for the next stage of our transformation and beyond and it will be great to work with him."
Asda reported a £989m pre-tax loss in 2025, although its net debt decreased by £500m to £3.1bn.
