‘Major milestone’ as Asda sales are back in growth for the first time in two years

Asda’s latest trading update shows a return to growth in the current quarter as the company makes continued progress against its Formula for Growth plan.

In the Q3 trading period (seven weeks to 18th August 2026), revenue including fuel is up 2.1% year-on-year. In the same period, Q3 LFL sales excluding fuel were up by 0.2% and LFL food sales up by 0.7%.

This marks a return to growth for the first time in more than two years, with the gap to the market at its narrowest since 2023.

Asda’s Executive Chairman, Allan Leighton, said: “Returning to growth in the current quarter for the first time in more than two years is a major milestone for Asda. It reflects 18 months of hard work to strengthen our proposition, improving price, availability and the overall shopping experience.

“We saw momentum build in Q2 with stable market share, and we're now seeing that translate into more customers choosing Asda. While this progress is encouraging, we are still in the foothills of recovery. There's still more work to do as we focus on building a stronger business for the long term.”

The improving performance reflects a stronger customer offer, including upgraded fresh and frozen ranges, more than 400 new products and an enhanced Rewards loyalty programme.

Asda retained The Grocer 33 annual pricing award and has topped every Which? branded groceries price comparison since this launched in April 2026.

The return to growth is highlighted in a trading update issued with Asda’s Q2 results for April to June, which showed Q2 revenue including fuel, adjusted for Easter, of £6.5 billion, up 0.4%, and, excluding fuel, down by 2.3%.

In Asda’s press release about its latest results, it said: “Looking ahead: Asda continues to invest in the customer offer and the capabilities needed to support long-term growth.”

It said the recently-announced Ocado partnership “remains on track, with a pilot launching towards the end of the year, ahead of a wider rollout in 2027. The business has also become the first retailer outside the US to partner with Amazon Ad Services. Rolling out from Q4 onwards, this partnership will create a new revenue stream and deliver a more personalised online shopping experience for customers.”

There’s more detail in Asda’s future plans in its press release.