Debt-laden Asda has emerged as the weakest performer among Britain’s biggest supermarkets this festive season, with new data from Kantar showing a sharp 5.8 per cent drop in sales over the 12 weeks to December 29, leading to a decline in… Market share from 13.5 percent to 13.5 percent. 12.5 percent.
The private equity-backed retailer, controlled by TDR Capital and billionaire Issa Brothers since its £6.8bn takeover in 2021, has struggled to keep up with lower-priced rivals. Its mounting debts have increasingly hampered Asda’s ability to match the aggressive discounting strategies used by German chains Aldi and Lidl.
Despite publishing improved figures for the last four weeks of December compared to the same period in 2023, the latest figures highlight the significant challenges faced by the Leeds-based grocer. Acknowledging these headwinds in November, Lord Rose of Monywooden, then chairman, admitted that Asda had “not been as aggressive in our trading position as we should have been”, admitting that the company had “lost a little bit of market share and a little bit of “Momentum.” “.
The decline in Asda’s market share comes as grocery price inflation reached its highest level since March 2024, rising to 3.7 per cent in December from 2.6 per cent in November, according to Kantar. Against this backdrop, overall supermarket sales rose by 2.1 per cent in the four weeks to 29 December, with households spending an average of £460 on groceries during the period.
Fraser McFate, head of retail and consumer at Kantar, described it as a “strong Christmas in supermarkets”, noting that total sales during December exceeded £13 billion for the first time.
Elsewhere, Britain’s largest supermarket chain, Tesco, strengthened its position with a 0.8 percentage point increase in its market share to 28.5 per cent, while its festive sales rose by 5 per cent. Sainsbury’s also enjoyed a strong performance, capturing its highest market share since December 2019 at 16 per cent. Its sales rose 3.5 percent in the 12 weeks to December 29, outpacing overall market growth.
Meanwhile, discounters Aldi and Lidl continued their expansion, taking record market shares of 10 per cent and 7.3 per cent respectively during the quarter.