Asda has reported 5.9% year-on-year decrease in total revenue, amounting to £5bn (excluding fuel) in the first quarter (Q1) fiscal 2025, ended 31 March.
The reported revenue decline includes a 1.1% impact due to an additional day’s trading in the leap year of Q4 2024.
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Asda experienced a 3.1% drop in like-for-like (LFL) sales up to the end of April, which includes the peak Easter trading period. This represents a slight improvement of 1.1% from Q4 2024. However, Asda has reported further enhancements in its LFL performance as of May.
Asda executive chairman Allan Leighton stated: “Earlier this year we set out a clear ambition to make Asda the number one choice again for value-conscious families. To deliver this, we are making a material investment to move our entire range to a new, lower Asda Price by the end of next year. We’re making good progress – with around 10,000 products at these lower price points – and customers are seeing the difference in their pockets.
“There has been a striking improvement in availability, which is now up to 95%, and our customer satisfaction measures have improved too. Although we are seeing the green shoots in sales performance, there is a long way to go, and we remain firmly focussed on widening the price gap over other full-service supermarkets to give customers the savings they expect every time they shop at Asda.”
In the fashion segment, Asda’s own brand George has seen 3.5% increase in LFL sales, outpacing the overall fashion market by 2% on volume.
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By GlobalDataIn April 2025, Asda initiated a pilot for its new George stand-alone concept store in the UK to explore the potential for overhauling its existing Asda Living stores.
In the convenience segment, Asda Express also reported robust Q1 performance, with a 6% growth in LFL sales following the acquisition of 469 convenience stores and fuel sites from the Co-op and EG Group.
These sites, along with Asda’s petrol filling stations (PFS) adjacent to main stores, have exceeded the fuel market in volume during the same period.
The retailer is also preparing to launch new Express stores in residential and city centre locations in the second half of 2025.
Investments in store hours and enhanced partnerships with supply partners have led to significant improvements in product availability and customer satisfaction. Product availability has risen from 90% to 95% since January 2025, and customer satisfaction scores have seen a positive shift.
Asda chief financial officer Michael Gleeson stated: “We have a clear strategy which we are executing against, backed up by a robust financial plan and a material programme of investment in price, range and availability.
“This has established a price advantage over other full-service supermarkets and we are beginning to see customers respond positively. Our consistent and disciplined approach to cash management and strong balance sheet gives us the headroom to continue investing in lower prices for customers.”
