Asda has admitted that a botched £1 billion IT upgrade, which disrupted product availability on shelves, has set the business back by six months in its turnaround efforts. The supermarket chain reported a 2.8% drop in like-for-like sales for the third quarter of 2025, attributing the decline to 'severe disruption' from transitioning away from systems linked to former owner Walmart.
Boss Allan Leighton, who returned to Asda last year, described the sales slump as 'self-inflicted'. The IT transition, completed in the third quarter, involved separating over 2,500 legacy systems and moving them onto Asda's own platforms. The process particularly affected stock flow between depots and stores, leading to 'inconsistent availability levels across stores and particularly online'.
Leighton noted that the issues caused a 'poor customer experience' and impacted the app and website in August, hitting home delivery sales. 'It's put us back by around six months, but we now have the base to allow the business to grow,' he said. He added that availability has returned to June levels, but the company does not expect to regain its Q2 2025 position until Q2 2026.
Despite the setback, Asda continued to invest in price reductions during the quarter. Since Leighton took over, the company has focused on pricing to regain market share lost to rivals such as Tesco, Aldi, and Lidl. Leighton also cautioned that consumers are 'confused and concerned' following the autumn Budget, but said it is too early to predict the impact on Christmas spending.
