Sun, 01 Feb 2026

Sun, 01 Feb 2026 Asda has lost its mojo and has a big fight to get it back

The industry data suggests that despite Asda embarking on a turnaround, it has been losing ground to rivals.
Decline in Sales and Market Share:
* Asda has registered 22 consecutive months of decline in sales.
* It has lost market share to discounters Aldi and Lidl.
* The number four spot in the UK supermarket market has been taken by Aldi. High Debt Levels:
* Asda's net debt stands at £3.8 billion, with annual financing costs increasing 38% to £611m.
* The company sold off a raft of stores and a distribution centre to reduce its borrowings. Lack of Investment:
* A former Asda executive believes the business is "totally broken" due to lack of investment over the past 10-15 years.
* Suppliers are also concerned about the level of investment required to turn the company around. Turnaround Efforts:
* Allan Leighton, who took over as chairman in 2020, has compared his task to climbing Mount Everest.
* The company is focusing on offering an unmatched value proposition and improving customer experience. Debt Burden and Consolidation:
* Both Asda and Morrisons are struggling with high debt levels, which may require consolidation or restructuring.
* A supplier believes that some form of consolidation in the sector seems inevitable. Customer Perception:
* Customers like Lynette from Swindon have lost faith in the company due to its decline in sales and quality.
* Allan Leighton has acknowledged that winning back customers will be a challenging task. Overall, Asda's turnaround efforts are at risk due to its high debt levels and lack of investment. The company needs to show significant improvement in 2026 to avoid further consolidation or restructuring in the sector.
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