Q1 results show total sales revenues at Asda fell by 1.5% year on year, but improved like-for-like sales over the period offer some relief as the supermarket announces plans to partner with Ocado to update its online grocery service.
Supermarket chain Asda has announced its Q1 results for the period ending 31st March 2026, which show total revenues excluding fuel down by 1.5% year on year at £5 billion. Like-for-like sales improved from (4.2%) in Q4 2025 to (0.8%) in Q1, and (1.3%) on an Easter-adjusted basis and the company said it is making progress towards its Formula for Growth turnaround plan.
Asda said that performance was driven by “strong operational inputs”, with availability maintained at an eight-year high of over 95% throughout the quarter.
Michael Gleeson, chief financial officer at Asda, commented: “We traded the first quarter in line with expectations and significantly improved vs Q4, supported by continued operational stability across our core systems, giving us the platform to operate more consistently and effectively.
“This was underpinned by continued disciplined cash management and a strong capital structure, with all debt maturities addressed through to 2028. Looking ahead, we expect to run the business with greater consistency and build on the progress made in Q1 as we deliver our Formula for Growth.”
Investment in key categories has supported prices
The supermarket said that continued investment in key categories had widened its “price advantage” versus full-range supermarket peers and also highlighted continued outperformance in the wider convenience market, delivering seven consecutive quarters of growth.
“This progress is due to the stabilisation of our core systems, which has enabled us to deliver ongoing improvements in availability, price and customer satisfaction.”
Allan Leighton, executive chairman at Asda, said: “In our previous trading update, I described performance as edging forwards and this continued through Q1, finishing the quarter broadly where we expected to be.
“This progress is due to the stabilisation of our core systems, which has enabled us to deliver ongoing improvements in availability, price and customer satisfaction. It has also given us the confidence to launch ‘Take a Fresh Look’ – an open invitation for shoppers to come back and give Asda another go. We’re confident they’ll see the difference straight away when they do.
“Today, we also announced a partnership with Ocado Group that will significantly improve our online business. It will bring the best-in-class technology and, importantly, enable us to compete more strongly in this fast-growing channel. This is a clear statement of intent and will put us in a much stronger position for the future.”
Asda partners with Ocado to improve online shopping offering
Asda also announced it plans to make “major updates” to its online grocery service through a partnership with Ocado Group, which will begin in 2027 with an upgrade to Asda’s website and online shopping experience. The upgrade will provide a more stable platform for customers, according to the supermarket, with an improved search function, more relevant product recommendations and a simpler checkout process.
Currently Asda fulfils more than 700,000 online grocery orders per week and it will rollout Ocado’s Smart Platform technology solutions across its website and mobile app, in-store picking and home delivery service.
Leighton commented: “We know that continued success in this highly competitive market is dependent on providing a positive experience for customers every time they shop. Partnering with Ocado, will strengthen our online offer and provide a consistent and high-quality experience for millions of shoppers, from order through to delivery, while supporting our Formula for Growth.”
