Asda has faced considerable challenges this festive season, registering a 5.8% drop in sales, which lowered its market share from 13.5% to 12.5%. Lower-priced competitors such as Aldi and Lidl have intensified this struggle, as Asda's significant debt limits its competitive pricing strategies, leaving it unable to keep pace with these rivals.
The situation has been exacerbated by rising grocery price inflation, which hit 3.7% in December, from 2.6% in November, marking the highest inflation level since March 2024. Despite overall supermarket sales rising by 2.1% during this period, Asda's ability to capitalize on this market growth has been notably hampered by its declining share.
Lord Rose of Monewden, the then-chairman, acknowledged in November that Asda hadn’t maintained a strong trading stance, conceding, "we have lost a bit of market share and a bit of momentum," emphasizing the need for strategic revision to regain competitive footing in the market.
In contrast, major competitors like Tesco and Sainsbury's reported positive trends, with Tesco increasing its market share to 28.5% and Sainsbury's achieving its highest market share since December 2019, highlighting Asda's ongoing struggles within a competitive retail landscape.
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