Skip to main content

Asda announces record £150m investment to become highest paying UK grocery retailer

March 1, 2024 07:00am
Share this on
1000th store image

• Proposal to increase retail pay by 8.4%bringing hourly rates to £12.04

• £415m total investment in hourly retail pay since the Issa brothers and TDR Capital acquired Asda in 2021

• Asda opens its 1,000th store*, following record 110 Asda Express convenience stores opened in February

Current hourly rateHourly rate from 1st July*
National rate£11.11£12.04
Stores inside the M25£12.28£13.21

Asda has today announced proposals for a record £150m investment in its retail pay offer to become the highest paying UK grocery retailer as it opens its landmark 1,000th UK store.

Today’s announcement will see an 8.4% increase for hourly-paid store colleagues, with rates rising to £12.04 from 1st July**. Rates for inside the M25 will rise to £13.21.

This follows a 10% increase for hourly-paid retail roles during 2023, and a 28% total increase in retail pay since the acquisition of Asda by the Issa brothers and TDR Capital completed in 2021 – with a total investment of almost £415m.

The new proposed rates of pay will exceed the Government’s National Living Wage and the current Real Living Wage and London Living Wage recommended by the Living Wage Foundation, are set to apply to colleagues in Asda Retail and in Asda Express, subject to ballot. Usdaw, the trade union that negotiates with Asda on retail pay in Northern Ireland and in Asda Express, is recommending members accept the rates in a ballot that closes on 15th March. The outcome of the ballot together with confirmation of the pay rate increase for colleagues who have joined the business from former EG Group sites will be confirmed on 18 March.

The supermarket’s record investment is set to boost hourly pay rates for more than 120,000 colleagues, as Asda today opens its 1000th store – Asda Express in Stevenage – marking a significant milestone in the business achieving its commitment of becoming the second largest grocery retailer in the UK through its focus on convenience complementing its existing store estate.

Mohsin Issa, Asda’s Co-owner, said: “This record investment will see Asda become the highest paying grocery retailer in the UK, recognising the hard work of our store colleagues in serving customers every day. We want to be a company that people are proud to work for, which is why we are proposing increasing pay for retail and Express colleagues by more than 8% this year. As we celebrate our 1000th store opening, I want to thank all our colleagues for their commitment and dedication in bringing Asda’s great value fuel and groceries to more communities.”

Hayley Tatum, Chief People and Corporate Affairs Officer at Asda, said: “Asda’s continued investment in our people is reflective of the hard work and commitment of our colleagues in serving customers every day. Asda’s proposed new rates of pay not only exceed the current Real Living Wage but would make us the highest paying grocery retailer in the UK. As we celebrate the landmark opening of Asda’s 1,000th store, we are proud to announce this record investment in our colleagues.”

Jayne Allport – Usdaw National Officer said: “We are pleased to have negotiated a pay increase to £12.04, which takes the basic hourly rate above the real Living Wage and meets our demands of at least £12 per hour. This offer from the company will now go to a ballot of Usdaw members covered by our agreements in Northern Ireland and Asda Express, Usdaw is recommending that they accept. Retail staff are key workers in our communities, ensuring that the nation is fed; they deserve our respect and one of the best ways of showing that is with decent pay, particularly in a cost of living crisis.”

Notes to editors

*1000 stores includes new Asda Express convenience stores and existing supermarket sites

**There will be an interim increase on 1st April to £11.44 for national colleagues, and £12.61 for stores inside the M25, to meet National Minimum Wage

Our story


© ASDA 2024