Asda turnaround king Allan Leighton hopes for summer boost
Asda said sales rose 0.2% in the first seven weeks of the quarter as Allan Leighton said the turnaround is about one-third complete.
- On Friday, Asda reported its first sales growth in two years, with like-for-like sales rising 0.2% in the first seven weeks of the second quarter, while Boss Allan Leighton indicated the turnaround is one-third complete.
- Debt servicing costs from the 2021 deal where TDR Capital and Mohsin and Zuber Issa acquired 90% of the group from Walmart for £6.8 billion have hampered the Leeds-based retailer's recovery.
- Second-Quarter revenue reached £6.5 billion, up 0.4%, though food sales fell 1.9% and net debt stood at £3.2 billion; industry data shows Asda holds an 11.5% UK grocery market share.
- Revenue increasingly originates outside traditional grocery, including fuel, pharmacy, and 'George' clothing; in May, Asda partnered with technology giant Ocado to overhaul its online grocery service.
- Leighton cautioned the turnaround will take three to five years, describing current progress as "foothills of recovery," emphasizing the group is roughly where expected for its scale.
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Britain's Asda returns to sales growth after two-year hiatus
Asda turnaround king Allan Leighton hopes for summer boost
Allan Leighton, the turnaround expert charged with leading Asda’s resurgence, has been known for his showmanship. During his first stint at Asda in the 90s, he kicked off an annual managers’ conference by revving into the auditorium on a Harley-Davidson motorbike. It was this reputation for bold, eye-catching leadership which prompted struggling discount retailer Asda to call on Leighton to halt its market share landslide. Leighton, now aged 73…
Leeds-based Asda returns to growth – Northern Financial Review
Leeds-based supermarket group Asda said on Friday it returned to growth in the current quarter. Asda reported third quarter trading for the seven weeks to August 18, showing Q3 revenue including fuel up 2.1% year-on-year “marking a return to growth for the first time in more than two years, with the gap to the market at its narrowest since 2023.” Q3 like-for-like (LFL) food sales were up 0.7%. Asda is owned 67.5% by private equity firm TDR Capit…
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