Key facts
- Allan Leighton returned as Asda chair in November 2024.
- Asda reported a £989m pre-tax loss for the year to December 2025.
- Revenue for the year to December 2025 was £25.9bn, a 3.6% decrease.
- Asda's net debt reduced to £3.5bn from £4.1bn.
- The grocer's market share remained at 11.5% in the year to August.
- Sales dipped by 0.2% in the year to August, with the company calling it its strongest performance since March 2024.
Allan Leighton, the turnaround expert brought back to lead Asda, is set to present evidence of the grocer's progress with a trading update. Asda has been struggling, having posted a £989m pre-tax loss for the year to December 2025 and seen revenue edge down by 3.6% to £25.9bn. The company has also been cutting jobs and is burdened by significant debt, though net debt has fallen to £3.5bn from £4.1bn.
Leighton, who previously led Asda's successful turnaround in the 1990s, returned in November 2024 to a vastly different market. The rise of discounters Aldi and Lidl has significantly challenged Asda's historical dominance in low prices. Experts note that Asda lost its price leadership focus approximately 15 years ago, allowing competitors to capture that market position.
Despite the challenges, Asda claims Leighton's turnaround is showing signs of success. Recent data indicates market share has remained stable at 11.5% in the year to August, with sales dipping only 0.2%. A spokesperson described this as the grocer's strongest performance since March 2024. Leighton himself expressed confidence in March, citing momentum and a strengthened balance sheet. Asda is also leveraging its buoyant non-food lines, particularly its George clothing range, which accounts for about 14% of turnover, to differentiate itself from pure discounters.