Supermarket chain Asda faced a setback with a 7% decline in sales according to industry experts NielsenIQ (NIQ). Over the past three months, Asda’s market share dropped from 12.2% to 10.9%. Following its acquisition by billionaire brothers Mohsin and Zuber Issa and TDR Capital in 2021, Asda appointed veteran chief Allan Leighton as its executive chairman in a bid to rejuvenate the business.
Despite announcing significant price cuts in March, Asda’s sales plummeted, contrasting with Tesco and Sainsbury’s which experienced sales growth. Aldi is also gaining ground with a market share of 10.3%. Asda remains optimistic about its strategy to become the UK’s most cost-effective traditional supermarket, emphasizing improvements in availability and pricing competitiveness.
In an effort to attract more customers, Asda launched a Christmas advertising campaign featuring The Grinch. NielsenIQ predicts that households will spend £20 billion on Christmas groceries this year, peaking at £5.7 billion next week. Mike Watkins from NielsenIQ noted that consumers are seeking affordable options this Christmas, making careful spending choices to enjoy festive indulgences.