Asda’s share of the supermarket market is falling as chairman Lord Rose expresses concerns about its performance

Asda has experienced a notable decline in its supermarket market share, just days after chairman, Lord Rose of Monewden, publicly expressed his dissatisfaction with the supermarket’s performance.

According to recent data from Kantar, Asda’s sales fell 6% in the 12 weeks leading up to August 4, dropping its market share from 13.7% to 12.6%.

The downturn comes at a challenging time for the private equity-backed supermarket group, which has lost ground to its main competitors including Tesco, Sainsbury’s and Morrisons. Lord Rose did not hide his disappointment, telling The Telegraph: ‘I’ve been in this industry for a long time and I’m a bit ashamed. I won’t deny that. I don’t like coming second, third or fourth.”

Asda is majority owned by TDR Capital and owns 67.5% of the company, while Mohsin Issa retains a 22.5% stake. His brother, Zuber Issa, sold his stake to TDR earlier this year. In light of recent challenges, Lord Rose has urged Mohsin Issa to step back from the chain’s day-to-day management, suggesting the company now needs a different kind of leadership. “He is a disruptor, an entrepreneur, he is an agitator,” said Lord Rose, who acknowledged the significant changes under Issa’s leadership but implied a new approach is necessary for current market conditions.

In contrast, Tesco has continued to strengthen its position; its market share has increased from 27% to 27.6% in the same period. The supermarket has implemented an Aldi price match program to retain customers amid the ongoing cost of living crisis, which has contributed to its steady market share growth since August last year. Lidl also gained ground, increasing its market share from 7.7% to 8.1%, while Aldi’s share fell slightly from 10.2% to 10%.

Despite a 1.4% sales increase, Morrisons saw its market share decline marginally from 8.7% to 8.6%, while Sainsbury’s 5.2% sales growth increased its market share from 14.8% to 15.3%.

This period of change in the grocery sector highlights the pressures Asda faces as it navigates a competitive and changing market landscape, with leadership decisions likely to play a crucial role in its future trajectory.