Asda’s Express convenience stores were a bright spot in an otherwise challenging first quarter, delivering a standout 6 per cent like-for-like sales growth – outpacing the wider convenience market and providing a much-needed boost to the retailer’s overall performance.
The strong results from the Express format follow the successful integration of 469 sites acquired from the Co-op and EG Group, with Asda Express and its adjacent forecourt stores outperforming the fuel market on volume. A robust pipeline of new Express stores is also planned for roll-out in residential and city centre locations later this year.
Despite a 5.9 per cent year-on-year dip in total revenue to £5.0bn (excluding fuel), Asda’s focus on value, availability and customer satisfaction helped deliver gains in key areas. Like-for-like sales across the business, adjusted for the Easter trading period, were down by 3.1 per cent, but this marks a sequential improvement from Q4 2024 and the retailer said early signs from May suggest a further uptick.
Pricing Strategy Creates Competitive Edge
Executive chairman Allan Leighton reaffirmed Asda’s goal to become “the number one choice again for value-conscious families,” citing significant strides in its pricing strategy. Over 10,000 products have now shifted to the new lower “Asda Price”, helping to establish a 3 per cent–6 per cent price advantage over traditional full-service supermarkets.
“Although we are seeing the green shoots in sales performance, there is a long way to go, and we remain firmly focussed on widening the price gap over other full-service supermarkets to give customers the savings they expect every time they shop at Asda,” said Leighton.
The first quarter also saw improvements in store operations, with product availability rising from 90 per cent to 95 per cent since January.
Asda’s fashion arm, George, also posted a solid performance, with like-for-like sales rising 3.5 per cent. The brand outperformed the wider fashion market by 2 per cent in volume, buoyed by the launch of a 60th anniversary collection fronted by supermodel Yasmin Le Bon.
