ASDA
ASDA asda/Instagram

Asda's leadership insists the supermarket is on the right path. But the numbers tell a different story. In late May 2025, the retail giant reported a 4.2% drop in like-for-like sales for the first quarter of the year, its worst performance since being acquired by the Issa brothers and private equity firm TDR Capital in 2021.

The results, revealed just days ago, sent ripples across the UK's retail landscape. And while co-owner Mohsin Issa maintains a confident front calling the business 'a work in progress' it's clear that the road to recovery is proving longer than expected.

A Decline That's Hard to Ignore

The 4.2% fall is more than just a blip. It marks a continuation of slipping momentum for Asda, which once held a solid position among the UK's 'big four' supermarkets. Issa told reporters he doesn't expect to see growth before the year's end at the earliest, despite pouring investment into store improvements, technology upgrades, and customer incentives.

'We are making good progress in transforming the business,' he said, while acknowledging that more work lies ahead. But in a fiercely competitive market, 'progress' isn't always enough to satisfy stakeholders or shoppers.

Behind-the-Scenes Restructuring

Since taking the reins in 2021, the Issa brothers have embarked on an ambitious overhaul. That's included integrating convenience sites from EG Group, reshaping logistics, and digitising the customer journey.

The strategy appears sound on paper, but it hasn't translated into growing footfall or basket size. Part of the challenge is that Asda is squeezed from all sides, Tesco and Sainsbury's are scaling up loyalty and pricing offers, while Aldi and Lidl continue to pull value-conscious shoppers away from traditional chains.

Despite these hurdles, Asda's leadership believes the investment will pay off in time. 'You can't fix a business overnight,' said a company source. 'But the pieces are falling into place.'

The Shoppers Are Changing, Too

The cost-of-living crisis hasn't let up. While inflation is no longer at its peak, many households remain cautious about spending. Families have changed how and where they shop, trading branded items for own-label and frequenting discounters more often.

That shift has hit Asda especially hard. For decades, it prided itself on being the go-to for low prices. But in recent years, it's been outpaced by budget rivals on both price and simplicity. Asda's new digital tools and reward schemes may help but only if customers see and feel the benefits on the shop floor.

Retail expert Sophie Lund-Yates commented that 'shoppers will judge by what's in their baskets, not what's on a strategy slide.' The brand may need more than an app to shift consumer perception.

Will Patience Wear Thin?

Despite the dip, Asda's leadership continues to talk in terms of transformation, not panic. They're banking on long-term wins from their investment in apps, systems and store formats. The question is whether patience among investors, and perhaps even customers, will hold.

Mohsin Issa insists this is a journey and he may well be right. But with each quarter of falling sales, confidence is harder to preserve. The public may not follow boardroom strategy updates, but they certainly notice empty aisles or higher bills.

Can Optimism Outrun the Metrics?

If Asda's recovery does come, it's likely to be slow and hard-earned. For now, what the company needs isn't just efficiency or digital solutions it's clarity, consistency, and a reminder to shoppers of what made them choose Asda in the first place.

Whether optimism will be enough to carry them through remains to be seen. What's clear is that slogans won't save a supermarket, but steady delivery might.