Asda’s struggles to retain customers have continued with new figures showing a fall in sales and market share in January.
New figures from analyst Kantar show the supermarket’s sales were down 5.2 per cent in the four weeks to January 26 compared to the same period in 2024. The drop was less than the 5.8 per cent recorded in December.
While the Leeds-headquartered business remains the fourth largest supermarket in the country, its share of the market has dropped from 13.6 per cent to 12.6 per cent over the last year.
The private equity-backed business has launched a turnaround plan under returning boss Allan Leighton in an effort to return it to stable footing, bringing back its Rollback pricing scheme.
Mr Leighton said last month: “We’re lowering prices throughout our stores and online to make Asda the cheapest traditional supermarket and in the process returning to what makes Asda special – delivering unbeatable value to the customers and communities who count on us.”
The Kantar figures showed Morrisons sales remained flat compared to last year, but its market share as the country’s sixth largest supermarket has dipped slightly from 8.8 per cent to 8.6 per cent.
Seventh-placed Lidl recorded a 7.4 per cent rise in sales and increased its market share to 7.2 per cent.
Aldi’s sales were up 4.2 per cent to increase its market share to 10.2 per cent.
Britain’s largest grocer Tesco gained the most share, its 28.5 per cent hold of the market now 0.7 per cent higher than this time last year, while it also saw its fastest rise in sales since April 2024 at 5.6 per cent.
Sainsbury’s outpaced the market at 4.2 per cent sales growth, increasing its share from 15.7 to 15.9 per cent.
The Kantar figures also showed that grocery price inflation defied predictions to slow in January to provide some relief for consumers..
Supermarket prices were 3.3 per cent higher than a year ago in January, down from December’s jump of 3.7 per cent.
Supermarket promotions contributed to the slowing, and consumer spending on them rose year-on-year by £274 million, accounting for 27.2 per cent of sales – the highest level in January since 2021.
Consumers also turned to non-branded products to keep costs down, with sales of own label items hitting a record high of 52.3 per cent of sales in January.
Prices rose fastest on products such as chocolate confectionery, chilled smoothies and juices, and butters and spreads, and fell fastest on cooking sauces, household paper products and cat food.
Meanwhile, the average shopper spent more than 10 per cent of their grocery bill in January on fresh fruit, vegetables and salad, totalling £1.2 billion – £193 million more than in December.
Protein products including bars, bites and drinks boosted spending on sports nutrition, with sales for the category 47 per cent higher than last year and more than two million households buying these items during the month.
Sales of low and no alcohol drinks were 7 per cent higher than last
New figures from analyst Kantar show the supermarket’s sales were down 5.2 per cent in the four weeks to January 26 compared to the same period in 2024. The drop was less than the 5.8 per cent recorded in December.
While the Leeds-headquartered business remains the fourth largest supermarket in the country, its share of the market has dropped from 13.6 per cent to 12.6 per cent over the last year.
The private equity-backed business has launched a turnaround plan under returning boss Allan Leighton in an effort to return it to stable footing, bringing back its Rollback pricing scheme.
Mr Leighton said last month: “We’re lowering prices throughout our stores and online to make Asda the cheapest traditional supermarket and in the process returning to what makes Asda special – delivering unbeatable value to the customers and communities who count on us.”
The Kantar figures showed Morrisons sales remained flat compared to last year, but its market share as the country’s sixth largest supermarket has dipped slightly from 8.8 per cent to 8.6 per cent.
Seventh-placed Lidl recorded a 7.4 per cent rise in sales and increased its market share to 7.2 per cent.
Aldi’s sales were up 4.2 per cent to increase its market share to 10.2 per cent.
Britain’s largest grocer Tesco gained the most share, its 28.5 per cent hold of the market now 0.7 per cent higher than this time last year, while it also saw its fastest rise in sales since April 2024 at 5.6 per cent.
Sainsbury’s outpaced the market at 4.2 per cent sales growth, increasing its share from 15.7 to 15.9 per cent.
The Kantar figures also showed that grocery price inflation defied predictions to slow in January to provide some relief for consumers..
Supermarket prices were 3.3 per cent higher than a year ago in January, down from December’s jump of 3.7 per cent.
Supermarket promotions contributed to the slowing, and consumer spending on them rose year-on-year by £274 million, accounting for 27.2 per cent of sales – the highest level in January since 2021.
Consumers also turned to non-branded products to keep costs down, with sales of own label items hitting a record high of 52.3 per cent of sales in January.
Prices rose fastest on products such as chocolate confectionery, chilled smoothies and juices, and butters and spreads, and fell fastest on cooking sauces, household paper products and cat food.
Meanwhile, the average shopper spent more than 10 per cent of their grocery bill in January on fresh fruit, vegetables and salad, totalling £1.2 billion – £193 million more than in December.
Protein products including bars, bites and drinks boosted spending on sports nutrition, with sales for the category 47 per cent higher than last year and more than two million households buying these items during the month.
Sales of low and no alcohol drinks were 7 per cent higher than last
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NewsTranscript
00:00So as those tough times are continuing, some new figures have come out today to say that sales in January were down 5.2% on last year.
00:11Their market share is slipping, although they remain the fourth biggest supermarket in the country.
00:16And they've brought back returning boss Alan Leighton in hope of turning things around.
00:23One of the first things he's done is go back to basics. They're bringing back rollback pricing.
00:27Alan Leighton says the aim, the eventual aim, is to make Asda the cheapest traditional supermarket.
00:34Whether that brings back shoppers though is the big question.
00:38So much competition out there from Aldi and Lidl.
00:41So really interested to hear what people think about whether rollback pricing, cheaper prices in store and online will be enough to tempt them back to Asda.