What is the current sales performance of Asda?

Asda's sales have decreased, losing £2 million per day over a recent 12-week period, with total sales falling to £4.32 billion from £4.49 billion year-on-year.

Why is Asda experiencing a sales decline?

Asda is facing a 'profound identity crisis,' compounded by issues such as inconsistent stock levels and a poor online customer experience resulting from a botched IT transformation.

How is Asda's market share compared to its rivals?

Asda's market share has fallen to 11.5% from 12.3% in the past year, while competitors like Lidl, Tesco, and Sainsbury's have reported sales growth.

Home / Business and Economy / Asda Sales Plummet Amid Identity Crisis

Asda Sales Plummet Amid Identity Crisis

4 Feb

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Summary

Asda's sales fell by 3.7% over 12 weeks, losing £2M daily.
Retailer faces competition from rivals and discounters.
Botched IT upgrades caused stock issues and poor online experience.

Asda's sales have seen a substantial decrease, with the UK's third-largest supermarket losing £2 million per day compared to the previous year. Over the 12 weeks leading up to January 25, sales dropped to £4.32 billion from £4.49 billion. This represents a 3.7% fall, equating to a daily loss of £2 million. Five years ago, Asda's sales for the same period were nearly £6 million higher per day.

The retailer is struggling against both traditional rivals such as Tesco and Sainsbury's, which reported sales growth, and discounters like Lidl, which saw a 10.1% rise. Asda's market share has consequently shrunk from 12.3% to 11.5% in the past year.

Chairman Allan Leighton acknowledged the challenges, noting that the supermarket is over a year into a three-to-five-year revival mission. This effort aims to rebuild the customer base, which was impacted by a botched IT transformation, codenamed 'Project Future,' rolled out last summer. The upgrade caused inconsistent stock availability and a poor online customer experience.