Overview
- Asda, which published its accounts on Friday, reported a £989 million pre-tax loss for 2025 driven largely by £656 million of one-off costs including a £284 million charge for separation from Walmart's IT systems and a £344 million property impairment.
- Executive chair Allan Leighton has pushed a plan to make Asda 5–10% cheaper than rivals and warned this price investment would materially cut profits, with adjusted earnings falling about one-third to roughly £761 million.
- The IT migration from former owner Walmart is explicitly blamed for stock shortages and lost sales during 2025, and the company recorded the specific £284 million exceptional charge linked to that separation.
- Asda says its balance sheet remains resilient with £1.3 billion of cash, £2.1 billion of total liquidity and net debt down about £500 million year-on-year to £3.1 billion, which management says allows multi-year investment in lower prices.
- Market share has slipped as discounters gain ground, with Worldpanel data showing Asda at about 11.5% in the 12 weeks to 17 May 2026 and Aldi close behind, and the retailer warns the turnaround will take several years and could affect prices and availability for shoppers.