Asda says sales set to return to growth for first time in two years

The private equity-backed retailer said it is still in the “foothills of recovery” as it continues to push ahead with a major turnaround plan, with like-for-like sales now rising for the first time in two years

Supermarket giant Asda has acknowledged that the challenging economic climate has put pressure on household budgets, but has revealed sales are poised to return to growth for the first time in two years.

The Leeds-based retailer stressed it remains in the “foothills of recovery” as it presses on with an ambitious turnaround strategy. Chief executive Allan Leighton suggested the business is approximately a third of the way through its transformation programme.

Speaking to reporters, he said the group is broadly where he anticipated it would be following his return to Asda’s top role in late 2024, having previously steered the retailer 25 years ago.

“We have been very consistent with the fact the turnaround will take between three and five years,” Mr Leighton said. “Whenever someone says that they think it is taking a long time, I make it clear that for something of this scale, this is just how long it takes.”

His remarks came as Asda disclosed that sales have moved back into positive territory for the current quarter for the first time in two years.

Like-for-like sales for the opening seven weeks of the current quarter, stripping out fuel, have increased by 0.2%. The retailer said it is consequently closing the gap on its biggest supermarket competitors, having watched its slice of the UK market shrink in recent years.

On Friday, the Leeds-headquartered chain posted revenues of £5.1bn for the second quarter of 2026. It said like-for-like sales fell 2.3% for the quarter, with food sales declining 1.9% over the period.

Mr Leighton added: “We saw momentum build in Q2 with stable market share, and we’re now seeing that translate into more customers choosing Asda. While this progress is encouraging, we are still in the foothills of recovery.

“There’s still more work to do as we focus on building a stronger business for the long term.”

Michael Gleeson, Asda’s chief financial officer, said: “A challenging geopolitical and economic backdrop continued to weigh on consumer confidence and household budgets during Q2. Despite these pressures, our continued investment in price and the overall customer proposition means we continue to make steady progress in our turnaround journey.”

In May, Asda unveiled plans to join forces with retail technology giant Ocado in an effort to enhance its online grocery offering for customers.