Asda has reported a decline in underlying sales for the third quarter (Q3) of 2025, attributing the downturn to widespread operational disruption following a major technology overhaul.
Total revenues excluding fuel for the quarter came in at £5.1bn ($6.76bn), with like-for-like sales down 2.8%.
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In a trading update, Asda stated that performance in the period was hit by “severe disruption” to its systems after the cutover from Project Future, which “materially impacted” trading.
Project Future involved the separation of more than 2,500 legacy systems and the migration of all parts of Asda’s business onto its own IT infrastructure.
The switchover, completed during the quarter, caused significant issues in day-to-day operations, particularly affecting the movement of stock between depots and stores. This led to uneven product availability across the estate and in the online channel.
The retailer’s online business was further affected by functionality problems following the rollout of a new app and website in August 2025.
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By GlobalDataAccording to the update, systems have now “stabilised” and product availability in stores and online has returned to an eight-year high of more than 95%, with operational challenges easing.
Asda executive chairman Allan Leighton 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.”
Asda maintained its focus on price during the quarter despite continued food inflation across the grocery sector.
It highlighted its Rollback to Asda Price initiative, under which it has reduced prices on more than half of its products since January 2025.
The company reported that its Express convenience estate outperformed the wider market over the three months to 30 September, posting like-for-like sales growth of 3.5%.
Asda also resumed its expansion of the Express format and remains on course to open up to 20 additional sites by the end of 2025, which would take its total convenience network close to 500 outlets.
New locations include Asda’s first convenience store in Liverpool city centre and its second in central Manchester.
During the quarter, the retailer also launched a £12m investment programme to refurbish key stores across Yorkshire and nearby regions.
Sites earmarked for upgrades include Kingswood, Harrogate, York and Keighley.
Each of these stores is set to receive a full shop-floor revamp, with simplified layouts, updated lighting and new signage.
