Asda falls behind rivals as sales and market share fall, data shows

Asda’s sales fell 6.4 per cent in the four weeks to August 10 and the group lost 1.3 percentage points of market share over the year, according to industry data.

Earlier this month, Asda reported a 5.3 per cent drop in second-quarter sales and its chairman, Stuart Rose, told the Telegraph newspaper he was “embarrassed” by the group’s performance.

However, warm weather and household shopping ahead of the summer holidays accelerated sales growth at most supermarkets in August.

Market research firm NIQ said supermarket sales rose 5.5 percent year-on-year in the four-week period, up from 3.6 percent growth in last month’s report.

He said the data showed the biggest increase in sales so far this year, and was helped by a short heatwave.

Ice cream sales increased by 38%, mineral water by 32% and soft drinks by 14.3%, while sales of hay fever remedies increased by 42%.

Echoing data from rival market researcher Kantar last week, NIQ said Ocado enjoyed the fastest growth over the 12 weeks to August 10, with sales up 14.3 per cent, followed by Marks & Spencer, which saw sales rise 10.7 per cent.

Tesco, Sainsburys, Lidl and Waitrose also gained market share.

Last month, NIQ said food price inflation was at 2.3 percent, higher than Kantar’s last reading of 1.8 percent.

He said the online channel’s share of grocery spending during the four-week period was 12.8 percent, up from 12.5 percent at the same time a year ago.

Mike Watkins, NIQ’s UK retail and business insights director, said on Wednesday: ‘Retailers will be pleased to have maintained shopper spending beyond Euro 2024, with the warm summer weather adding a boost to sales.

‘However, with inflation still the top concern for nearly one in three households (29 percent) and shoppers still looking for value, it’s clear that loyalty and membership programs remain key to incentivizing spending.’

He added: “As summer draws to a close, retailers will be under pressure to maintain sales growth over the next six weeks.”