Price cuts cost Asda a billion in losses

The British supermarket chain Asda posted a loss of nearly 1 billion pounds (1.15 billion euros) in the last fiscal year. The loss is partly due to price cuts aimed at winning back customers.

Recovery could take five years

Total revenue for the third-largest British supermarket chain—behind Tesco and Sainsbury’s—fell by 3.4% to 25.9 billion pounds (29.9 billion euros). The pre-tax loss rose to 989 million pounds (1.14 billion euros) in 2025, compared to 599 million pounds (691.5 million euros) in 2024.

The losses come as no surprise: CEO Allan Leighton had already warned in March of last year that his plan to be 5% to 10% cheaper than traditional competitors would significantly reduce profits and that recovery would take up to five years.

Asda does put the losses into perspective, however: the company says it has a strong balance sheet with healthy cash flow, and its net debt has decreased. But the supermarket chain continues to lose market share. The company is majority-owned by the investment fund TDR Capital, while former owner Walmart still holds a 10% stake.