Asda reported improved first-quarter trading performance as the supermarket group continued working through its turnaround strategy and operational recovery plan.
The retailer said total revenues excluding fuel reached £5.0 billion for the quarter ending 31 March 2026, down 1.5% year-on-year. However, like-for-like sales improved significantly compared with the previous quarter.
Like-for-like sales moved from a decline of 4.2% in Q4 to a decline of 0.8% in Q1. On an Easter-adjusted basis, sales were down 1.3%.
The company said performance was supported by stronger operational stability and improved product availability across stores.
Why It Matters
The latest Asda Q1 trading update suggests the retailer’s recovery efforts are beginning to stabilise core supermarket operations after a difficult trading period.
Availability remained above 95% throughout the quarter, which Asda described as its highest level in eight years. The retailer has also continued investing in pricing across major grocery categories to strengthen its competitiveness against other UK full-range supermarket chains.
Independent supermarket price comparisons from Which? and The Grocer continued to show a widening price advantage for Asda during the quarter.
The results are important for the wider UK supermarket sector because competition on price, availability, and convenience remains intense as retailers try to protect customer loyalty during ongoing consumer spending pressure.
Asda also highlighted continued growth at Asda Express, which delivered its seventh consecutive quarter of growth and continued outperforming the wider convenience market.
The company said new partnerships with third-party food brands are expected to support additional momentum in smaller convenience stores.
Alongside the trading update, Asda also confirmed a new technology partnership with Ocado Group to improve its online grocery business.
The partnership will introduce Ocado’s Smart Platform technology across Asda’s online grocery operations beginning in 2027. The move is expected to strengthen the retailer’s position in the fast-growing online grocery channel and further expand UK retail technology investment across the sector.
Asda said operational stability across its core systems has helped improve consistency across pricing, availability, and customer satisfaction.
The retailer also confirmed that all debt maturities have been addressed through to 2028 as part of ongoing financial management efforts.
Looking ahead, Asda said it expects to continue building consistency across the business while progressing its “Formula for Growth” turnaround plan.
For the wider UK grocery industry, the Asda Q1 trading update will likely be watched closely as supermarkets continue balancing pricing pressure, online investment, and operational performance across a highly competitive market.
