Crisis at Asda deepens as sales slump ahead of the crucial Christmas trading period

Asda’s share of the grocery market has crashed to a record low after a slump in business ahead of the crucial Christmas trading period.

In a report that will make grim reading for boss Lord Rose, research group Kantar revealed that sales at the supermarket chain totalled £4.2billion in the 12 weeks to November 3.

That was 5.5 per cent lower than the same period a year earlier – making it the worst performing grocer in the country.

It took Asda’s market share down to just 12.5 per cent – the lowest level since Kantar started recording figures in 2011.

The car crash figures demonstrate the scale of the grocer’s decline just days after Rose – a retail veteran and former boss of Marks & Spencer – said he and fellow bosses were in ‘violent agreement’ change was needed. 

Aldi is closing in on Asda’s spot as Britain’s third-largest grocer. The German discounter holds 10.4 per cent of the market share, the same it held a year ago, while sales increased 1.6 per cent to £3.5billion – just £700million less than Asda.

Asda’s share of the market has dropped from 13.5 per cent a year ago to 12.5 per cent.

Once Britain’s second-biggest supermarket, Asda has been in the doldrums since brothers Mohsin and Zuber Issa joined private equity giant TDR Capital to buy it in a £6.8billion debt-fuelled deal in 2021. Its market share was 14.1 per cent at the time.

Last week Rose, 75, admitted Asda had ‘taken our eye off the ball’.

Retail expert Jonathan De Mello, founder of JDM Retail, said: ‘With Lord Rose at the helm, there is hope that Asda’s fortunes will improve longer term, but he is facing an uphill struggle.’

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