Asda’s food sales slowed in the weeks before Allan Leighton stepped back from leading the grocer’s turnaround, to be replaced by a former Morrisons and Tesco boss. 

The discount supermarket grew its like-for-like food sales by 0.1 per cent in its third quarter, marking a slowdown from the significant uplift in sales it had seen at the start of this period.

The group had already disclosed 0.7 per cent like-for-like sales growth in food for the seven weeks to mid-August, but Friday’s figures, which cover the full 13 weeks to the end of September, show this uplift has since tailed off.

Asda has been pushing for a turnaround since appointing Allan Leighton, who led the grocer to its 1990s heyday, as executive chairman in November 2024. 

He stepped back into a non-executive role last week, and was replaced by former Morrisons boss David Potts, who took up the reins as chief executive on Tuesday. 

Leighton said in August that the group was in the “foothills of recovery” after it reached like-for-like sales growth for the first time in more than two years.  

Asda’s overall revenue, including fuel, grew 3.1 per cent year on year in the 13 weeks to September, as online sales were a key driver, up 6.9 per cent like-for-like.

The discount grocer said it is working to keep prices low to draw in customers battling a squeeze on their budgets. British families’ budgets are at a six-month low, according to Asda’s income tracker.

Asda loses ground on rivals

Michael Gleeson, Asda’s finance chief, said: “The work we’ve done through the period to deliver against our strategy was reflected in our third-quarter performance. 

“Asda’s key strength is the breadth of our business, spanning food, clothing, fuel, pharmacy and other services. This means we can meet more of our customers’ everyday needs and gives us more opportunities to grow. 

“Our disciplined approach to managing costs and cash means we can keep investing in value today and in sustainable growth in the long-term.”

Asda’s slowdown in sales growth revealed on Friday comes amid suggestions that the grocer’s takings have slumped back into negative territory in recent weeks. 

The discount grocer’s total sales came in at £4bn in the 12 weeks to November, according to the latest figures from Worldpanel, marking a 0.5 per cent decline from the same time last year. 

During this period, takings grew at each of Asda’s competitors, including a 6.6 per cent uplift at Lidl and a two per cent jump at Morrisons. 

Since taking charge of the grocery giant, David Potts, who was chief executive of Tesco’s Asian business before joining Morrisons in 2015, has told Asda’s staff to focus on improving the in-store experience for shoppers.

He has instructed the group’s general managers to make more staff-operated checkouts available at its stores. He told staff: “We’re making it harder than it should be for customers to get what they want, move around the store and pay for their shopping. We need to change that, starting now.”

On Thursday, Potts announced Asda would cut 4p per litre from the price of petrol and unleaded diesel at its 321 fuel forecourts. The measure will save the average family £2.20 per tank, the grocer said.