Asda executive chair Allan Leighton has hailed progress in the brand’s turnaround plan, delivering like-for-like sales improvement in the first quarter of the financial year.
For the three-month period ending March 31, 2026, the retailer reported improving like-for-like sales to -0.8% compared to -4.2% in the fourth quarter of the previous year. Total revenues excluding fuel were £5bn, 1.5% down year on year.
Asda said performance was driven by “strong operational inputs” with an eight-year high for availability of over 95% maintained throughout the quarter.
The retailer said it continued to invest in “key categories” during the period, which widened its “price advantage versus full-range supermarkets”.
Its Express c-stores “continued to outperform the wider convenience market, having delivered seven consecutive quarters of growth”.
The results come on the same day that Asda said it had reached a fulfilment agreement with Ocado for its online delivery.
Leighton said: “In our previous trading update, I described performance as edging forwards and this continued through Q1, finishing the quarter broadly where we expected to be.
“This progress is due to the stabilisation of our core systems, which has enabled us to deliver ongoing improvements in availability, price and customer satisfaction. It has also given us the confidence to launch ‘Take a Fresh Look’ – an open invitation for shoppers to come back and give Asda another go. We’re confident they’ll see the difference straight away when they do.
“Today, we also announced a partnership with Ocado Group that will significantly improve our online business. It will bring the best-in-class technology and, importantly, enable us to compete more strongly in this fast-growing channel. This is a clear statement of intent and will put us in a much stronger position for the future.”
Asda chief financial officer Michael Gleeson added: “We traded the first quarter in line with expectations and significantly improved versus Q4, supported by continued operational stability across our core systems, giving us the platform to operate more consistently and effectively.
“This was underpinned by continued disciplined cash management and a strong capital structure, with all debt maturities addressed through to 2028. Looking ahead, we expect to run the business with greater consistency and build on the progress made in Q1 as we deliver our Formula for Growth.”
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