Asda sales rebound amid ‘foothills of recovery’

A supermarket giant has returned to sales growth for the first time in two years as it continues a long-term turnaround plan amid pressure on household budgets.

Asda said like-for-like sales, excluding fuel, rose 0.2 per cent during the first seven weeks of its current quarter, signalling an improvement after its share of the UK grocery market declined in recent years.

However, the private equity-backed retailer said it remains in the “foothills of recovery”, with boss Allan Leighton indicating the business is roughly a third of the way through its turnaround.

Mr Leighton, who returned to Asda’s top job in late 2024 after previously leading the business 25 years earlier, said progress was broadly in line with his expectations.

He said: “We have been very consistent with the fact the turnaround will take between three and five years.

“Whenever someone says that they think it is taking a long time, I make it clear that for something of this scale, this is just how long it takes.”

The Leeds-based chain reported revenues of £5.1 billion for the second quarter of 2026, with like-for-like sales down 2.3 per cent and food sales falling 1.9 per cent.

Mr Leighton added: “We saw momentum build in Q2 with stable market share, and we’re now seeing that translate into more customers choosing Asda.

“While this progress is encouraging, we are still in the foothills of recovery.

“There’s still more work to do as we focus on building a stronger business for the long term.”

Michael Gleeson, Asda’s chief financial officer, added: “A challenging geopolitical and economic backdrop continued to weigh on consumer confidence and household budgets during Q2.

“Despite these pressures, our continued investment in price and the overall customer proposition means we continue to make steady progress in our turnaround journey.”

The improving sales performance comes after Asda revealed plans in May to partner with retail technology giant Ocado in a bid to improve its online grocery service.

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