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Asda Posts First Food Sales Growth Since 2024

David Potts is targeting a price-led recovery with a 4p fuel cut, tighter store operations and a push to improve staffed checkouts.

Overview

  • The group reported a 0.1% like-for-like rise in food sales for the 13 weeks to the end of September, a return to growth that Friday’s quarterly results showed.
  • Overall group like-for-like sales excluding fuel nudged down 0.1% to £5.1bn for the quarter, showing the food uptick has not yet produced broad‑based recovery.
  • Online grocery jumped 6.9% and Asda Express convenience stores grew 2.7%, highlighting a split between strong digital and convenience channels and weaker wider store performance.
  • Asda’s heavy price investment under the 'Price and Rollback' programme has helped draw shoppers but reduced adjusted earnings and, combined with a 2025 IT failure that hit availability, contributed to a £989m pre-tax loss for 2025.
  • Since taking over as chief executive, David Potts cut forecourt fuel by 4p per litre and ordered immediate store fixes to improve service, a move aimed at converting recent channel gains into sustained market share while testing whether price-led strategy can be made profitable.