Following yesterday’s release of ASDA’s figures for the quarter ending 30 June 2026; Eleanor Simpson-Gould, Senior Retail Analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “ASDA’s Q2 results reaffirm the grocer’s tenuous position in the UK food & grocery sector with sales continuing to fall. Total revenue excluding fuel decreased to £5.1bn in the second quarter on an Easter-adjusted basis, down 3.9% on last year’s £5.3bn. The pace of decline has worsened through the first half of the year, with like-for-like (l-f-l) sales falling 2.3% in Q2, a steeper decline than the -0.8% reported in Q1. This is despite 18 months of work under the Formula for Growth plan. ASDA’s Q2 performance underlines how much ground it has to make up before its focus on price, range and availability translates into a genuine recovery in sales. ASDA must keep closing the gap on range and service in Q3 by ensuring its fresh and frozen range investment is felt consistently across stores, while ensuring its price investments stay front of mind for consumers.
“ASDA has invested in a stronger customer offer during Q2, including upgraded fresh and frozen ranges, over 400 new products and an extension of its Rewards loyalty scheme to Express stores. Yet, food l-f-l sales still fell 1.9% between April and June, providing little evidence that this investment has resonated with consumers. One encouraging development is the rollout of shelf-edge cameras, new technology designed to flag empty shelves so staff can restock before sales are lost. This investment is a positive signal that ASDA is targeting availability, which has weighed on its turnaround. However, the impact will only be proven once the cameras are rolled out more widely across stores.
“While ASDA’s outlook remains challenging, its seven-week trading statement to 18 August 2026, reporting a 0.2% uplift in ex-fuel l-f-l sales — its first growth in more than two years – appears to be an encouraging signal after a prolonged period of decline. However, the grocer’s food l-f-l sales rose 0.7% for the seven weeks, a weak return that also indicates a considerable lag in its non-food proposition. Furthermore, the period covered the World Cup and a run of heatwaves, both of which broadly lifted UK grocery spending, so some of this improvement will be a result of favourable conditions, rather than ASDA-specific gains alone. ASDA provided a similarly positive initial outlook for Q1, but that quarter ultimately ended with total revenue, excluding fuel, down 1.5%. A promising in-quarter trajectory has not yet translated into a positive result. ASDA needs to demonstrate that these early Q3 improvements can last throughout the entire quarter. Continued investment in keeping prices low compared to competitors is essential to avoid another temporary surge in what has been a prolonged decline.”
