Asda, the British supermarket chain, is showing signs of recovery under the renewed leadership of Allan Leighton, who has returned as chairman after two decades. The company anticipates achieving its first quarterly growth in over two years, buoyed by an increase in food sales, improvements in online shopping, and ongoing price competition with discount retailer Aldi.

Despite these positive indicators, Leighton cautioned that consumer spending remains subdued ahead of the October Budget announcement. He noted that customers are holding back on discretionary purchases until the government’s fiscal plans become clearer. Leighton also critiqued Labour’s economic policies to date, describing them as an impediment to growth.

Leighton called on the government to develop an economic strategy that restores confidence among both consumers and businesses. He emphasized the importance of refraining from imposing additional costs on companies, suggesting that such measures could hinder economic recovery. Asda’s tentative progress reflects the broader challenges facing retailers amid ongoing economic uncertainty and cautious consumer behavior.