Asda Sales Drop in Market Share

Asda, the third-largest supermarket chain in the UK, is under increasing pressure as recent figures reveal a significant decline in its grocery market share. Sales fell by 6.4% in the three months leading up to August 10, translating to an annual revenue loss exceeding £2 billion. This downturn marks Asda as the only member of the traditional "big four" supermarkets to experience a sales drop, with its market share plummeting to 11.8%, just above Aldi, which is now in fourth place. The decline in sales has intensified scrutiny on Asda's major shareholder, Mohsin Issa, particularly following calls from chairman Lord Stuart Rose for him to step back from his role. The GMB union has urged Asda's ownership to take immediate action to safeguard jobs, highlighting concerns that the supermarket may be "in a fight for survival." In contrast, Aldi also reported a slight decrease in market share, with a 0.7% drop attributed to a slowdown in new store openings and competitive pricing from larger rivals. Despite these challenges, the grocery market overall has seen growth, particularly during a recent mini heatwave that boosted sales of seasonal items like barbecues and ice cream. Asda has announced plans to invest an additional £30 million in its stores in the latter half of the year to enhance customer service and product availability. The company also noted that a recent refinancing of its £3.9 billion debt has positioned it for a more stable financial future.