Asda: Supermarket chain's performance continuing to ‘edge forwards’, says chair
The chairman of supermarket chain Asda has said the company’s performance continued to “edge forwards” in the first quarter of the year as the firm saw its revenues slip.
Asda posted revenues excluding fuel of £5bn for the three months ending 31 March, 1.5 per cent down year-on-year.
It came as the company announced that like-for-like sales had improved in comparison to the end of last year.
Asda posted a drop in like-for-like sales of 0.8 per cent for the period ending 31 March, compared to a drop of 4.2 per cent in the final months of 2025.
Sales in the first quarter dropped 1.3 per cent on an Easter-adjusted basis.
Speaking on the results, Allan Leighton, Asda’s executive chairman, said: “In our previous trading update, I described performance as edging forwards and this continued through Q1, finishing the quarter broadly where we expected to be.”
“This progress is due to the stabilisation of our core systems, which has enabled us to deliver ongoing improvements in availability, price and customer satisfaction.”
Mr Leighton added that the results had also given the firm the confidence to launch its new Take a Fresh Look initiative, aimed at persuading shoppers to “come back and give Asda another go”.
He added: “We’re confident they’ll see the difference straight away when they do.”
Asda said its performance had been driven by “strong operational inputs”, with availability maintained at an eight-year high of over 95 per cent throughout the quarter.
The company added that its continued investment into key categories had also widened its price advantage against its supermarket peers.
In figures released earlier this month, price comparison site Which? Named Asda as the third cheapest supermarket, with Lidl and Aldi coming in above at second on third. The prices were based on a list of 96 items including food, drink and household essentials.
The latest results come amid a major turnaround plan at Asda which was launched by Mr Leighton.
The boss, who returned to the retailer in late 2024 after previously leading the firm more than 20 years earlier, has sought to improve product availability and value for shoppers through price investment.
The results came as Asda also announced that it is to partner with retail technology giant Ocado in a bid to improve its online grocery service for customers.
The supermarket chain said it will roll out Ocado’s Smart Platform technology across its website and app, in-store picking and its home delivery service.
Asda said the partnership will start in 2027 with an upgrade to its website and online shopping experience.
Mr Leighton said: the move would “significantly improve” Asda’s online business.
He added: “This is a clear statement of intent and will put us in a much stronger position for the future.”
Speaking on the firm’s first quarter results, Michael Gleeson, Asda’s chief financial officer, added: “We traded the first quarter in line with expectations and significantly improved vs Q4, supported by continued operational stability across our core systems, giving us the platform to operate more consistently and effectively.
“Looking ahead, we expect to run the business with greater consistency and build on the progress made in Q1 as we deliver our Formula for Growth.”