IT Cutover Hits Q3 Sales At Asda

Asda today [28th November] published its Q3 trading update for the three-month period ending 30th September, reporting total revenues (excluding fuel) of £5.1bn and a 2.8% decline in like-for-like sales.

• Total revenue (excluding fuel): £5.1bn. 
  
  

• Like-for-like (LFL) sales declined by 2.8%. 

• Q3 trading impacted by severe disruption to systems following cutover from Project Future, which materially impacted performance. 

• Systems have now stabilised; availability is back over 95% and operational issues are reducing.  

• Progress in H1 and in recent weeks provides confidence to double down on the ‘Formula for Growth’ moving forward. 

• Asda Express outperformed the wider convenience market with like-for-like sales growth of 3.5%. 

• Continued investment in the business through Q4 and 2026 underpinned by a strong capital structure. 

Allan Leighton, Asda's Executive Chairman, said:   

“We said it would take three to five years to turn Asda around. We made good progress in the first half of the year against our ‘Formula for Growth’ with the best availability in eight years, a notable price gap versus competitors and a return to like-for-like growth.

“At Q2 results, we said that the cutover from Project Future, although completed, would likely have a negative impact on our performance. This change severely disrupted our systems and materially impacted our progress, as we saw a step-back to inconsistent availability, operational issues at depot and in-store and a poor customer experience online and through the app that impacted our Grocery Home Shopping business in particular.”

“Since then, we have made good progress stabilising our platforms and the worst of the disruption is now behind us. Availability is back to where it was in June, operational issues are reducing and performance in recent weeks is improving, but we do not expect to re-establish our Q2 2025 position until Q2 of 2026. Thank you to all our colleagues for their hard work and commitment and our customers for their patience."  

Project Future  

Project Future was one of the largest and most complex IT projects undertaken by any European retailer. It involved the separation of more than 2,500 legacy systems and moving every aspect of Asda’s operations to its own IT platforms.  

The completion of the systems cutover disrupted operations during Q3 - particularly the flow of stock between depots and stores – which led to inconsistent availability levels across stores and particularly online. The online business was also impacted by functionality issues following the launch of a new app and website in August.  

All systems have stabilised and availability in stores and online is now back at an eight-year high of over 95%. Improvements continue week by week.    

Delivering outstanding value  

Asda continued to invest in lower prices during Q3 despite rising food price inflation across the sector. Through its Rollback to Asda Price programme, the supermarket has reduced prices on more than half of all products since January.  

This investment has firmly established Asda as the UK’s cheapest traditional supermarket – as regular independent price comparison surveys demonstrate. Asda has won the weekly ‘Grocer 33’ survey 16 out of a possible 22 times in the current survey year and has topped the Which? Big Shop Basket index every month this year.   

Convenience  

Asda’s Express convenience stores outperformed the wider market in Q3, delivering like-for-like sales growth of 3.5%. The retailer has restarted its Express store expansion programme and is on track to open up to 20 new sites by the end of 2025, taking its total convenience estate to c.500 stores. 

This expansion is focussed on high-footfall urban areas, residential neighbourhoods and transport hubs - locations where the business has historically been underrepresented and where demand for convenience shopping continues to rise. New sites include Asda’s first convenience store in Liverpool city centre and its second in central Manchester.   

Store investment   

During Q3, Asda launched a £12m programme to upgrade key stores across Yorkshire and surrounding areas including Kingswood, Harrogate, York, Pudsey, Grimsby, Stockton, and Keighley.  

Each location will receive a full shop-floor refurbishment featuring simplified layouts, modern lighting, and refreshed signage designed to create a brighter, more welcoming environment. All upgrades are on track for completion by early December, ensuring stores are ready for the busy festive period. 

Source : Asda

Image : Asda

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