Asda reported a modest increase in sales for the first time in more than two years, signaling potential progress in its efforts to recover from a challenging period under private equity ownership. The UK’s third-largest supermarket chain saw sales rise by 0.1 percent in the 12 weeks ending September 6, marking the first quarter of growth since March 2024. The grocer’s market share held steady at 11.5 percent in September compared with August, according to data from Worldpanel by Numerator.

Asda’s recent performance has been hindered by significant operational challenges, including increased debt levels and disruptions linked to an IT separation project following its £6.8 billion acquisition by TDR Capital and the Issa brothers in 2021. Allan Leighton, the company’s executive chairman who returned at the end of 2024 to spearhead a turnaround, described the latest sales figures as a preliminary sign of recovery. Upon his return, Leighton emphasized the ongoing challenges in regaining customers who had shifted loyalties to rival discounters Lidl and Aldi.

During the same period, Lidl increased its market share from 8.3 percent to 8.7 percent year-on-year, with sales rising 8 percent. Growth in categories such as soft drinks, confectionery, and fresh produce helped fuel this expansion. Aldi’s market share slipped slightly to 10.6 percent from 10.8 percent, though its sales edged up by 0.7 percent compared to the previous year.

The broader grocery market displayed mixed results. Online grocer Ocado continued its rapid growth streak, reporting a 13.3 percent increase in sales and a market share gain to 2.2 percent. Tesco, the UK’s largest supermarket chain, saw sales rise 1.7 percent, maintaining a market share of 27.8 percent. Sainsbury’s also posted a 2.9 percent sales increase with a market share of 15.2 percent. Morrisons, another grocer under private equity ownership, experienced a 2.8 percent rise in sales, though its market share remained steady at 8.4 percent.

While Asda’s growth remains marginal, the latest figures suggest the grocer may be beginning to reverse the decline that has marked its performance since the ownership change in 2021. Market watchers will be closely monitoring whether this improvement can be sustained amid ongoing competitive pressures from discount chains and online retailers.