Full Breakdown
Asda Marks First Sales Growth in Over Two Years Amid Turnaround Push
8/29/2026, 12:44:34 AM
Core Development: Modest Sales Rise Signals Turnaround Progress
Allan Leighton, executive chairman of Asda, said like-for-like sales at established stores (excluding fuel) rose 0.2 % in the seven weeks to 18 August, with food sales up 0.7 %. Total revenue increased 0.4 % to £6.5 bn in Q2 2026, and overall revenue grew 2.1 % in a separate update. Leighton called the lift a “huge milestone” and a “psychologically important” step in the multi-year turnaround.
Background & Context
- 2020 – The Issa brothers and TDR Capital bought Asda for £6.8 bn.
- 2021 – TDR took full control, leaving the grocer with heavy debt.
- Nov 2024 – Leighton returned as executive chairman to reverse a three-year sales decline.
- 2024-2025 – Roughly £1 bn was spent on IT upgrades and a “Take A Fresh Look” store refresh.
Data & Statistics
| Metric (7-week period to 18 Aug) | Figure |
|---|---|
| Like-for-like sales (ex-fuel) | +0.2 % |
| Food sales (ex-fuel) | +0.7 % |
| Overall revenue growth (Q2 2026) | +0.4 % to £6.5 bn |
| Total revenue growth (Q2 2026) | +2.1 % |
| Market-share (Worldpanel) | 11.5 % (stable) |
| Net debt (year to Dec 2025) | £3.5 bn (down from £4.1 bn) |
| Pre-tax loss (year to Dec 2025) | £989 m (widened 65 %) |
Official Statements & Responses
Leighton linked the sales lift to better pricing, product availability, and a “momentum online” effort that has lagged rivals. He said the turnaround is expected to take three to five years, with the business now about a third of the way through that plan.
CFO Michael Gleeson noted a “challenging geopolitical and economic backdrop” that pressures consumer confidence and household budgets. He said Asda’s investment in price and the overall customer proposition is intended to sustain “steady progress” in the recovery.
Conflicting Reports & Gaps
Worldpanel data released by *The Grocer* shows Asda’s value sales were up 0.2 % year-on-year in the 12 weeks to 9 August 2026, while volume sales fell 2.5 %—the steepest decline among the top six UK supermarkets. The gap suggests the modest value-sales growth may stem from higher average prices rather than increased purchase volumes. Asda did not provide comparable volume data.
Verbatim Quotes
- “We have been very consistent with the fact the turnaround will take between three and five years,” — Allan Leighton
- “Our price position is strong, we are now getting more customers in the business and we have got some momentum online and that’s been the biggest drag,” — Allan Leighton
Timeline of Key Events
- 2020 – Issa brothers and TDR Capital acquire Asda.
- 2021 – TDR assumes full ownership.
- Nov 2024 – Leighton appointed executive chairman (second tenure).
- 2024-2025 – £1 bn IT overhaul and store-improvement program launched.
- July-Aug 2026 – Seven-week period shows 0.2 % like-for-like growth; food sales up 0.7 %.
- Q2 2026 – Revenue rises 0.4 % to £6.5 bn; pre-tax loss widens.
What’s Next
Asda will pilot its partnership with Ocado before the end of 2026 to improve online fulfilment and plans a later-2026 rollout with Amazon Advertising to deliver a more personalized digital shopping experience. The company has urged the UK government to consider exempting large-format retailers from additional business rates, arguing that such relief would support continued price competitiveness.
