Asda has seen a notable decline in its market share as customers increasingly choose rivals.
- Over a 12-week period ending in early November, Asda’s share of the grocery market dropped from 13.5% to 12.5%.
- Sales at Asda fell by 5.5%, contrasting with growth seen by competitors Tesco and Sainsbury’s.
- Tesco experienced a market share increase, with sales rising by 4.6%, indicating strong customer loyalty.
- Sainsbury’s also gained ground, boosting its market share thanks to a 4.4% rise in sales.
Asda has witnessed a reduction in its market share, dropping from 13.5% to 12.5% over the 12 weeks leading up to 3 November. This signifies a notable shift in consumer preferences towards other leading grocery retailers, particularly Tesco and Sainsbury’s.
The decline in Asda’s market share is in stark contrast to the performance of its competitors. Tesco, Britain’s biggest supermarket, successfully expanded its market dominance with an increase in market share from 27.3% to 27.9%. This growth was supported by a 4.6% increase in sales, underscoring their effective customer engagement strategies.
Similarly, Sainsbury’s managed to increase its market share to 15.5%, driven by a 4.4% boost in sales. This trend illustrates the competitive environment within the grocery sector, as rivals continue to attract customers with compelling value propositions.
Despite these challenges, Asda has announced plans to invest £13 million in additional store hours over the upcoming busy period. This initiative aims to improve customer service by ensuring more staff are available to assist shoppers during peak times.
Further organisational changes are underway at Asda, following the appointment of Lord Stuart Rose as chair. With Mohsin Issa stepping back from daily management, the company is focusing on accelerating its transformation efforts to regain competitive ground.
Asda is navigating a challenging retail environment, working on strategic initiatives to reclaim its position in the market.
