Asda, a major supermarket chain, faced a 7% decline in sales, according to recent reports. Market experts from NielsenIQ observed a decrease in Asda’s market share from 12.2% to 10.9% over the last three months.

Since its acquisition by billionaire brothers Mohsin and Zuber Issa along with TDR Capital in 2021, Asda has been addressing challenges. Under the leadership of Allan Leighton, who returned as executive chairman, the company aims to rejuvenate its performance. Despite announcing significant price reductions earlier this year, Asda experienced a significant drop in sales.

Among its competitors, Asda was the only major supermarket to witness a sales decrease year-over-year. Meanwhile, Tesco and Sainsbury’s reported sales growth of 4.5% and 5.2% respectively. Aldi is also posing a competitive threat to Asda with a market share of 10.3%.

An Asda spokesperson expressed confidence in the company’s strategy to enhance customer offerings and value proposition. The spokesperson highlighted improvements in availability and pricing competitiveness. As part of its efforts to attract customers, Asda rolled out a Christmas advertising campaign featuring The Grinch.

NielsenIQ projected that UK households would spend a significant amount on Christmas groceries, with spending expected to peak next week. Mike Watkins from NielsenIQ noted that consumers are seeking affordable options this festive season and are making strategic savings to indulge in treats for their families in December.