Aldi is set to near Asda’s market share by 2027 and could overtake it by 2028, GlobalData has revealed.
The data and analytics company said in order to secure its position in the UK food and grocery market as the third biggest grocer, Asda must “redefine itself with a clear differentiation from discounters”.
GlobalData senior retail analyst Eleanor Simpson-Gould said: “The grocer must focus on its online capabilities this year to reestablish itself as a dominant player in the market and set itself apart from Aldi. Without immediate action, it risks dropping out of the coveted “big three” position even sooner.”
Earlier this week, Asda chair Lord Stuart Rose admitted he is “embarrassed” by the grocer’s performance and believes co-owner Mohsin Issa should step back from its day-to-day running.
At the start of the month, the supermrket posted a 5.3% like-for-like sales fall in its second quarter, while its market share has fallen sharply from 14.8% when the Issa brothers purchased the chain in 2021 to 12.7% last month.
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Simpson-Gould expplained: “Such leadership disputes will do little to restore employee morale, already under such strain that colleagues have chosen to strike this year.
“Despite emergency plans to spend £30m to ensure staff is on checkouts at the weekend, stores are replenished during the day, and improvements are made to in-store cleanliness, Asda’s enhancements to the customer experience feel more like the bare minimum to persuade remaining customers not to shift to discounters.
“For Asda to truly resonate with consumers, it must provide a compelling reason for shoppers to spend money, an intensified focus on price and expanding its core range of grocery products will be crucial.”
Following its latest results, the retailer laid out plans to focus on three key priorities for the remainder of the year, including customer satisfaction, enhanced product availability and renewed trading plan.
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