Supermarket chain Asda has reported its first quarterly food sales growth in more than two years, saying its investment in prices is beginning to pay off. The Leeds-based group posted a slight 0.1% fall in overall group like-for-like sales, excluding fuel, at £5.1 billion for the three months to the end of September.
However, same-store food sales returned to growth for the first time since 2024, edging up by 0.1%. Online grocery sales jumped 6.9%, and its Asda Express convenience chain reported 2.7% growth.
Sharp reversal from second quarter
This marks a sharp reversal from the second quarter, when group like-for-like sales fell 2.3% and food sales dropped 1.9% for the period.
Michael Gleeson, chief financial officer at Asda, said: “The work we’ve done through the period to deliver against our strategy was reflected in our third quarter performance. Like-for-like food sales returned to growth in the third quarter, online sales grew strongly and group sales increased, despite the challenging economic backdrop.”
Price cuts and leadership changes
Asda, the UK’s third largest supermarket chain, has been aggressively cutting prices in a bid to restore its fortunes. Earlier this month, the group hired former Morrisons boss David Potts as its new chief executive to help drive revival efforts. Former boss Allan Leighton became non-executive chairman, two years after he returned to head the firm.
While cutting prices has helped the company, it has also impacted its bottom line. This, combined with a botched IT upgrade last year that hit product availability and dented sales, led the group to a £989 million pre-tax loss for 2025, widened from losses of £599 million a year earlier.
Adjusted earnings were also down 33% to £761 million for the year, partly because of its Asda Price and Rollback price investment.
