Asda: 'Clear Improvement In Q2 Performance'

• Fourth consecutive quarter of improved like-for-like sales: Q2 LFL sales lower by 0.2%, marking a 2.9% improvement on Q1 – and Asda’s best quarterly performance since Q1 2024

• Total revenue (ex. fuel): £5.3bn, declining 0.2%. 

• Asda Express outperformed the convenience market to deliver 8.6% LFL growth

• In fashion, George continued its strong momentum with a 2.5% rise in LFL sales

Strategic progress:

• Rollback price cuts on over 50% of products, with an average reduction of 22%

• Asda regains best-value traditional supermarket title in Grocer Gold awards

• Product availability increases to 96% - its highest level in eight years

• Project Future now complete with all stores, food depots and head offices operating on new systems.

Asda today updated on Q2 trading for the period ending 30th June and reported that its continued investment to lower prices for customers strengthened volumes and like-for-like sales during the quarter.

The supermarket’s total revenue for Q2 (excluding fuel) decreased by 0.2% year-on-year to £5.3bn. On a like-for-like basis, sales declined by 0.2%, representing a 2.9% step on from Q1 and the fourth consecutive quarter of improving like-for-like sales.

Allan Leighton, Asda’s Executive Chairman, said: “We saw a clear improvement in performance during Q2, with volumes and like-for-like sales strengthening, driven by better product availability and our material investment in price. This widened the price gap over competitors and firmly re-established Asda as the best-value traditional supermarket.

“This week, we completed the rollout of Project Future, with all stores now operating on our new systems. The collective rate of completion did cause some temporary disruption with product availability and in our online experience, which will impact our sales outturn in the current quarter.

“As planned, we expect to exit the year in like-for-like growth as we continue our investment in price to protect our customers from inflationary pressures. As we’ve said from the outset, transforming Asda will take time, but we remain confident in the direction of travel and the long-term potential of the business.”

Best value traditional supermarket

Asda’s investment in Rollback to lower prices across its entire range continues at pace. Since launching at the end of January, more than 50% of all products – around 14,000 SKUs – have been through or are going through the Rollback cycle, before moving to a new, permanently low Asda Price. The average price reduction of these products is 22%, which highlights Asda’s promise to provide customers with outstanding value every time they shop.

Rollback has widened the price advantage over competitors and re-established Asda as the UK’s best-value traditional supermarket - a position recently confirmed by The Grocer in its annual Grocer Gold Awards. Their trusted weekly survey showed that Asda was consistently cheaper than competitor base and loyalty prices on a basket of 33 everyday products.

Through the continued investment in Rollback, Asda is helping shield customers from rising food price inflation, which is up 5% in August. The supermarket’s own inflation rate remains significantly lower than the market as it keeps price rises in check.

Product availability strengthened during the quarter, rising to 96% - the highest level in eight years - reflecting the continued focus on driving improvements in priority areas.

Strong performance in fashion and convenience

George at Asda’s unique combination of style, quality and unbeatable value continues to appeal to value conscious shoppers, resulting in a 2.5% increase in like-for-like sales during the quarter.

In May, Asda opened its first standalone George concept store at Crown Point in Leeds. The store showcases the best George clothing, homewares and general merchandise ranges in a modern retail setting. The concept has been very well received by shoppers and Asda is planning to rollout a further 10 stores across the UK next year.

Asda Express continues to outperform the wider convenience market following the successful integration of all 469 sites acquired from the Co-op & EG Group, with like-for-like sales growth of 8.6% during Q2.

Asda will resume its ‘standalone’ Express convenience store opening programme in early October in Castleford. The retailer plans to open up to 20 more convenience stores across the UK in the space of a month from late October onwards, bringing its low prices and great value to more local communities.

Completion of Project Future

Project Future, the IT transformation programme to separate more than 2,500 systems from former owner Walmart is now complete, with all stores, food depots and home office systems operating on Asda-owned technology.

Michael Gleeson, Asda’s Chief Financial Officer, said: “These results are in line with our expectations as we made further progress on our journey. The completion of Project Future is an important moment, and we are beginning to benefit from operating in one world. We have seen like for like improvement over the last four quarters and expect to exit the year in like-for-like growth.”

Improving the shopping experience

Asda’s investment to enhance the customer shopping experience continued during the quarter. Following the £2m upgrade of its Pilsworth store in Q1, Asda partnered with Compass on a £10m programme to refurbish 180 in-store cafés with refreshed interiors, digital ordering, and improved menus. This launched in June and is on track for completion in October.

Earlier this month, Asda announced a £12 million investment to transform seven stores across Yorkshire and surrounding areas. Each location will receive full shop-floor refurbishments, featuring simplified layouts, modern lighting, and updated signage to create a more welcoming and engaging shopping environment.

Source : Asda

Image : Asda 

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