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UK supermarket Asda slumps to near £1 billion annual loss
The private equity-backed retailer said a £656 million IT separation charge and lower prices pushed adjusted earnings down 33%, officials said.
- Fresh financial accounts revealed Asda sank to a £989 million pre-tax loss for 2025, a significant increase from the £599 million loss recorded the previous year.
- A £656 million one-off cost related to IT separation from former parent Walmart, combined with a botched IT upgrade last year, drove the widening losses.
- Boss Allan Leighton warned that plans to make Asda 5% to 10% cheaper would "materially reduce" profits, while Adjusted earnings fell 33% to £761 million.
- Despite the losses, an Asda spokesman stated the results "do not reflect the underlying financial strength" of the business, citing £1.3bn in cash and £2.1 billion total liquidity.
- Like-for-Like sales slipped 3.1% year-on-year excluding fuel as Asda aggressively cuts prices to restore its fortunes with shoppers amid the turnaround effort.
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Evening Standard+2 Reposted by 2 other sources
Asda tumbles to near-£1bn loss amid heavy price cutting
Asda also reported that like-for-like sales slipped 3.1% lower year-on-year, excluding fuel.
·London, United Kingdom
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UK supermarket Asda slumps to near £1 billion annual loss
British supermarket group Asda slumped to a near £1 billion ($1.3 billion) loss last year, reflecting executive chairman Allan Leighton's push to cut prices in an effort to win back shoppers and a raft of one-off costs.
·New York, United States
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Coverage Details
Total News Sources9
Leaning Left2Leaning Right1Center5Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
L 25%
C 63%
12%
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