Supermarket chain Asda faced a significant setback with a 7% decline in sales recently. Data from industry experts NielsenIQ (NIQ) also indicated a drop in Asda’s market share from 12.2% to 10.9% over the past three months.
Following its acquisition by billionaire brothers Mohsin and Zuber Issa along with private equity firm TDR Capital in 2021, Asda has been striving to overcome challenges. Allan Leighton, a seasoned executive, was brought back as the company’s chairman by TDR to steer a revival effort. Despite announcing substantial price reductions earlier this year, Asda’s sales continued to decline.
Interestingly, Asda’s competitors, Tesco and Sainsbury’s, experienced sales growth of 4.5% and 5.2% respectively during the same period, with discount retailer Aldi also gaining ground with a market share of 10.3%.
In response to these challenges, an Asda spokesperson expressed confidence in the company’s strategy and customer offerings, emphasizing improvements in availability, competitive pricing, and commitment to being the most affordable traditional supermarket in the UK.
To attract more customers, Asda launched a Christmas advertising campaign featuring The Grinch. Meanwhile, NielsenIQ projected that UK households would spend a significant amount on Christmas groceries this year, with peak spending expected next week.
Mike Watkins of NielsenIQ highlighted a trend of consumers seeking affordability this holiday season by making strategic savings on their regular grocery purchases to indulge in special treats for their families in December.