Asda has reported another fall in sales, but the latest figures show that the decline is slowing down. The UK supermarket chain said better product availability and investment in lower prices helped improve its performance during the first quarter of 2026.
The latest Asda sales decline data shows that like-for-like sales dropped by 0.8% compared with the same period last year. However, when adjusted for the timing of Easter, the fall was 1.3%.
This is a clear improvement from the final quarter of 2025, when the supermarket reported a much bigger 4.2% decline in sales.
Asda is now trying to improve its performance and win back customers as competition in the UK grocery market continues to grow.
Asda Sales Decline Data for the First Quarter
Asda reported like-for-like sales of 0.8% lower year-on-year for the three months ending March 31, 2026. These figures compare sales from stores that have been operating for a similar period.
The company also reported total revenue of £5 billion, excluding fuel sales. This was down 1.5% compared with the first quarter of the previous year.
Although sales are still falling, the slower decline suggests that some of the company’s recent efforts may be starting to help.
In 2025, Asda faced a difficult year, with its core profit falling by 33%. The company has since been working to improve its store operations, product availability and pricing.
Better Product Availability Helps Asda
One of the main reasons behind the improved figures is better product availability. Customers are more likely to shop at a supermarket when the products they need are regularly in stock.
Asda said that stabilising its core systems had helped the company make progress in product availability, pricing and customer satisfaction.
The supermarket has also invested in some price cuts to make shopping more affordable. Lower prices can help attract customers, especially when shoppers are comparing supermarket bills and looking for ways to save money.
Allan Leighton, Asda’s executive chairman, said the progress came from improvements in the company’s main systems. He also said Asda expected to build on the progress made during the first quarter.
However, the supermarket still has work to do before it can return to stronger sales growth.
Asda Faces Strong Competition in the UK
Asda continues to face pressure from major supermarket rivals, including Tesco, Sainsbury’s, Aldi and Lidl.
Tesco remains the UK’s leading supermarket, while Sainsbury’s holds the second position. Discount retailers Aldi and Lidl have also increased competition by attracting customers with value-focused prices.
Industry figures published in May showed that Asda’s sales fell by 3% in the 12 weeks leading up to May 17, 2026. Its market share stood at 11.5%, which was 0.6 percentage points lower than a year earlier.
These figures show that the improvement in the first-quarter results has not yet solved the company’s wider sales problems.
Asda will need to keep improving its prices, product availability and shopping experience if it wants to compete more effectively with other supermarket chains.
Asda Partners With Ocado to Improve Online Shopping
Asda has also announced a partnership with technology company Ocado to overhaul its online business.
The plan is part of the supermarket’s wider effort to improve its operations and stop losing market share to competitors. The partnership is expected to help improve its online shopping services, with automation work planned to begin in selected UK stores in 2027.
Online grocery shopping has become an important part of the retail market. Customers expect convenient ordering, reliable deliveries and a wide range of products.
Improving these services could help Asda attract more online shoppers and make its business more competitive.
Debt Remains a Challenge for Asda
Along with falling sales, Asda is dealing with financial pressure linked to the debt taken on during its 2021 ownership deal.
Mohsin and Zuber Issa and private equity firm TDR Capital bought a 90% stake in Asda from Walmart in a deal worth £6.8 billion. Walmart retained a 10% stake in the supermarket group.
Analysts have pointed to the cost of servicing this debt as one of the challenges facing the business.
Asda has said that all debt maturities have been addressed through to 2028. Even so, the company needs to improve its financial performance while continuing to invest in its stores, prices and online operations.
What Happens Next for Asda?
The latest Asda sales decline data presents a mixed picture. The fall in like-for-like sales became smaller in the first quarter, but the company’s wider market performance remains under pressure.
Better product availability, lower prices and the planned Ocado partnership could help the supermarket improve its position over time.
However, competition from Tesco, Sainsbury’s, Aldi and Lidl remains strong. Asda will need to show that its recent improvements can continue and that more customers are willing to shop with the brand.
For now, the slower sales decline is a positive sign, but a return to consistent growth remains the bigger challenge.
