Asda Posts Sales Decline; Reduces Debt by £500m

Asda today updated investors on its trading performance for the year ending 31st December 2025, alongside the progress delivered through its Formula for Growth turnaround plan.

Strategic Progress

The Formula for Growth is the strategy which underpins our three-to-five-year plan to transform Asda. In the first year, we delivered clear progress by:

• Re-establishing Asda as the UK’s lowest-priced traditional supermarket through significant investment, creating a 4-7% price gap versus competitors.

• Completing Project Future and stabilising core systems.

• Restored availability to an eight-year high of 95% following the systems changeover, supporting stronger Q1 performance. Total like-for-like sales improved from (1.6%) in January to (1.0%) in February, turning positive at 1.2% in March, with in-store LFLs in growth for the last two months.

• Asda is more than just a supermarket, with 47% of total revenues coming from George, Express, pharmacy, optical, online and fuel.

• Strengthened liquidity through disciplined cash management, ending the year with £1.3bn in cash on the balance sheet and £2.1bn in total liquidity.

Allan Leighton, Asda’s Executive Chairman, said: “As we enter the second year of our turnaround, we have an improved customer offer, stable core systems, a strengthened balance sheet and a strong leadership team to deliver our Formula for Growth. Our progress in key areas like price, availability, and customer satisfaction is edging forwards, reflected in positive like-for-like sales growth in our stores for the last two months.

“At the same time Asda is far more than just a supermarket, with almost half of our total revenues last year coming from the wider group, which includes George, Express, pharmacy, optical, online and fuel. George and pharmacy outperformed their respective markets last year, demonstrating the breadth of our offer.

“I want to thank all our colleagues for their hard work and commitment. Their determination to make Asda better every day is what drives our progress.”

Michael Gleeson, Asda’s Chief Financial Officer, said: “As we continued to make progress against our strategy, disciplined cash management meant we closed the year in a solid financial position, with more than £1.3bn of cash on the balance sheet and total liquidity of £2.1bn. Our operational performance continues to stabilise, and we have seen sales momentum build through the first quarter.”

Source : Asda

Image : Asda

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