Asda’s turnaround efforts have stalled after the discount supermarket was the UK’s only major grocer where sales fell last month. 

The supermarket chain posted £4bn in total takings in the 12 weeks to 1 November, 0.5 per cent lower than the same time a year ago, according to Worldpanel. The company’s share of the grocery market slimmed from 11.6 to 11.3 per cent in the same period.

Customer demand grew at each of Asda’s competitors, including a 6.6 per cent increase at Lidl and a two per cent jump at Morrisons. Apart from Iceland, which saw flat returns, all other supermarket chains increased their sales year-on-year.

Asda’s declining sales threaten to derail its turnaround efforts, just months after boss Allan Leighton declared it was in the “foothills of recovery” .

The grocer’s posted a 0.2 per cent uplift in like-for-like revenue excluding fuel in the seven weeks to mid-August, marking the company’s first positive sales figures in more than two years. 

Asda, which is owned by private equity firm TDR Capital, has struggled to keep up with German discounters Aldi and Lidl as it battles to cut its £3bn debt pile.

The supermarket chain’s return to declining sales comes after it appointed former Morrisons boss David Potts as its new chief executive. 

Leighton’s comeback draws to close

Allan Leighton had been brought back to the grocer to lead its turnaround, but he stepped back to a non-executive role last week with immediate effect.

Potts said upon his appointment: “Asda has long been a great business, one I’ve admired and traded against over many years. The colleagues are remarkable, some of the most passionate I’ve met.

“The business has made good progress but significant opportunities remain and I’m delighted and very proud to have been asked by Allan to lead the team.”

Leighton said: “David has an outstanding record in our industry, his experience is exactly what we now require for the next stage of our transformation and beyond and it will be great to work with him.”

Asda fell to a £989m pre-tax loss in 2025, though its net debt fell by £500m to £3.1bn. 

Lidl continued to tighten its hold on British shoppers in the 12 weeks to November, growing its market share by 0.4 per cent to 8.6 per cent – the biggest increase of any UK grocer. 

Online-only grocer Ocado also added to its rise, delivering its 30th consecutive period of double-digit growth. Sales grew by 12.3 per cent to £822m. The firm now holds a record market share of 2.3 per cent, up from 2.1 per cent last year.