Asda, a leading supermarket chain, faced a significant challenge with a 7% decline in sales. Data from industry experts NielsenIQ (NIQ) indicated a drop in Asda’s market share from 12.2% to 10.9% over the past three months. The company has been navigating challenges since its acquisition by billionaire brothers Mohsin and Zuber Issa along with private equity firm TDR Capital in 2021. Allan Leighton, a seasoned executive, was brought back as the chairman to steer the company towards recovery.
Despite efforts to boost sales through extensive price reductions announced in March, Asda saw a sharp decline in sales. The company aimed to be 5% to 10% cheaper than its competitors, including Tesco, Sainsbury’s, and Morrisons. However, Asda was the only major supermarket to experience a year-on-year sales decrease, contrasting with Tesco’s 4.5% growth and Sainsbury’s 5.2% increase. Aldi, a discount retailer, closely trailed Asda with a market share of 10.3%.
In response to the challenges, an Asda spokesperson expressed confidence in the company’s strategy and progress, highlighting improvements in availability and value propositions. Asda unveiled a Christmas advertising campaign featuring The Grinch to attract customers amidst fierce market competition. NielsenIQ predicted a substantial spend of £20 billion on Christmas groceries, with a peak of £5.7 billion expected next week.
Mike Watkins, NielsenIQ’s head of retailer and business insight, noted that consumers are seeking affordable options this holiday season, focusing on making prudent shopping decisions to indulge in December. This consumer behavior aligns with the trend of strategic spending and budget-conscious shopping for festive treats.
