UK supermarket chain Asda’s online grocery segment registered 39 million order deliveries and achieved sales of £3.2bn in 2023.
The retailer noted that online sales now constitute 18% of its total grocery revenue – an 8% increase since 2020.
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The supermarket attributed its online growth to ongoing investments in pricing, quality and innovation.
During the year, Asda also broadened its quick commerce reach by partnering with Deliveroo, Just Eat and Uber Eats, covering more than 1,200 store combinations.
The retailer also expanded its Express Delivery service to more than 330 stores, offering the option to have 30,000 products delivered in under an hour for customers within a three-mile radius.
Asda chief financial officer Michael Gleeson said: “We are investing to build a bigger and better Asda, bringing our heritage in value to more customers across the UK. Our priority remains growing the Asda business for the long term through diversifying our offering to ensure customers can shop with us when and how it best suits them.
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By GlobalData“Our online business is a key part of our omnichannel offering and it is pleasing to see the investments made in price, service and to expand our digital footprint continue to resonate with customers and drive sales.”
The company’s online growth contributed to a pre-tax profit of £180m in the financial year 2023, a significant turnaround from a pre-tax loss of £432m in 2022.
Asda’s financial year 2023 performance has also enabled it to reduce its leverage ratio from 3.9 to 3.0 and maintain a net debt of £3.8bn, with more than £1bn in cash.
In addition to its ongoing investment in online grocery, Asda also announced a £50m store upgrade programme in June 2024 for its larger stores.
The programme, set to be completed by the end of November, will improve the shopping experience across 170 stores, including the introduction of new George departments and services.
The investment complements the conversion of 470 convenience sites acquired from Co-op and EG UK to Asda Express.
In June 2024 the retailer relaunched its “Happy to Chat” initiative, which enables its delivery drivers to socialise with customers while their shopping is being delivered.
