Supermarket giant Asda has revealed that a problematic £1 billion IT system overhaul has significantly hampered its recovery efforts, pushing back progress by an estimated six months.
Sales Slump Following System Transition
The company reported a 2.8% decline in like-for-like sales during the third quarter of 2025. Boss Allan Leighton, who returned to lead the chain last year, openly described this sales slump as a 'self-inflicted' wound.
The disruption stemmed from the mammoth task of separating over 2,500 legacy IT systems previously linked to former owner Walmart. This transition to Asda's own platforms, which was completed in Q3 2025, caused major operational issues.
Operational Disruption and Customer Impact
The botched upgrade severely disrupted the flow of stock between depots and stores, leading to what the supermarket termed 'inconsistent availability levels across stores and particularly online'.
Mr Leighton confirmed that these issues created a 'poor customer experience', negatively impacting the chain's app and website in August and hitting home delivery sales hard.
Road to Recovery and Economic Concerns
While acknowledging the setback, Leighton struck a cautiously optimistic note about the future. 'It's put us back by around six months, but we now have the base to allow the business to grow,' he stated.
He confirmed that product availability has now returned to levels seen in June and that operational issues are reducing. However, he does not expect Asda to re-establish its Q2 2025 market position until Q2 of 2026.
Despite these challenges, Asda continued to invest in price reductions over the quarter. This forms part of a broader strategy to regain market share lost to rivals like Tesco, Aldi, and Lidl.
The investment comes against a backdrop of higher food inflation and pressure on consumer confidence. Leighton also cautioned that 'consumers are confused and concerned' following the recent autumn Budget, though he said it is too early to predict how this will affect Christmas spending.
