Asda is moving closer to being overtaken by German discounter Lidl after another disappointing three-month sales performance from the private equity-owned grocer.
Run by the petrol station billionaires, the Issa brothers and backed by TDR Capital, Asda notched up just 0.8% sales growth - well behind all of its rivals.
Reports of a rift between the two brothers following a buyout of parts of their petrol station group by Zuber Issa has added uncertainty at Asda, which was already battling against a huge debt pile following the leveraged takeover.
According to NeilsonIQ (NIQ), Sainsbury’s and Tesco grew by 7.9% and 6.3% respectively while Marks & Spencer shot ahead by 11.2%, according to the latest grocery monitor from data research giant Nielsen.
Asda’s market presence is also slipping, with its share now 11.7% against 12.3% a year ago.
Lidl’s market share, meanwhile, rose to 10.2% from 9.8%.
Overall, the sector saw 5.4% growth for the four weeks to 23 March 2024 against 5.3% reported in February
NIQ added the quarter had seen “intense competition” among supermarkets which has continued.
Underlining that point, John Lewis-owned Waitrose today announced more price cuts Wednesday, while Sainsbury’s has expanded its low prices range.
These moves follow a pledge from discounter Aldi, another Germany-based discounter, to cut prices by £380 million.