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Asda's Downward Spiral: New Owners Fail to Revive Struggling Supermarket
16 Nov
Summary
- Asda's new owners, the Issa brothers, raise prices in deprived areas
- Asda buys upscale Booths store, alienating core low-cost customers
- Asda's market share drops to lowest level since 2011, sales fall 6.5%
As of November 2025, Asda's new owners, the Issa brothers, are facing significant challenges in reviving the struggling supermarket chain. After acquiring Asda in a £6.8 billion deal in 2021, the brothers have made several decisions that have alienated the retailer's core low-cost customer base.
One such move was raising prices at an Asda superstore in the deprived Moss Side area of South Manchester, where cash-strapped shoppers had previously benefited from the store's cheap petrol prices. The Issa brothers' decision to increase prices in this community was met with criticism from MPs investigating the cost-of-living crisis.
Adding to their woes, Asda also purchased a store from the upscale "Waitrose of the North" chain, Booths, in the affluent Hale Barns suburb. This move further distanced Asda from its traditional customer base, leading many to question the brothers' strategic vision.
The consequences of these missteps are now becoming clear. In the 12 weeks to November 1, 2025, Asda's sales fell by 6.5%, making it the worst-performing major UK supermarket. The retailer's market share has now dropped to 11.8%, its lowest level since data collection began in 2011. Retail experts predict that discount rival Aldi could feasibly overtake Asda as the UK's third-largest grocer within the next 6-12 months.
Despite efforts by former Asda boss Allan Leighton to return the store to its low-cost roots, the turnaround has yet to materialize. With the CEO position remaining vacant for over four years, Asda's future remains uncertain as it struggles to regain its footing in the highly competitive grocery market.
