Asda posts first quarterly sales increase in over two years

Allan Leighton, executive chair of Asda, announced that the retailer achieved a 0.2% increase in sales at its established stores, not counting fuel, for the three months to the end of June, ending a stretch of declining performance. The prior quarter had seen sales fall by 2.3%, making this uptick a significant psychological milestone for the company. Leighton credited a robust price position, higher footfall and momentum in the online channel, which had previously dragged performance.

He noted that recent improvements in the supermarket's IT infrastructure, after a major and expensive transition following the 2020 takeover by the Issa brothers and TDR Capital, helped stabilise operations. Growth was driven mainly by food sales, which rose 0.7%, while clothing and other non-food categories slipped amid a tough broader market.