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Profits Slide at Asda as Leighton Points to Turnaround Momentum

A failed £1bn systems migration cut availability, with March trading back in positive territory.

Overview

  • Asda, which reported results Friday, said 2025 sales excluding fuel fell 3.3% to £21bn and adjusted earnings dropped by a third to £764m.
  • The company blamed a £1bn IT separation from Walmart-era systems for severe disruption that left shelves short of stock and pushed customers to rivals.
  • Operational metrics have improved, with availability at 95% and like-for-like sales moving from declines in January and February to 1.2% growth so far in March.
  • Executive chair Allan Leighton, who returned in 2024 and is running the grocer without a CEO, said the balance sheet can support the multi‑year turnaround.
  • Leighton rejected claims from Chancellor Rachel Reeves that forecourt operators are profiteering on fuel, a sensitive issue for Asda given its 300-plus petrol stations.