TDR Capital

UK Supermarket Asda Cuts Prices To Kick-Start Recovery

Asda launched a major round of price cuts on Thursday, with a “significant investment” its new boss hopes will kick-start a recovery.

Struggling British supermarket group Asda has raised an additional loan of £155 million to help it pay back debt due in the next two years.

Stuart Rose, executive chairman of British retailer Asda, has stepped down from his role and will be replaced by veteran Allan Leighton.

Asda said its chairman Stuart Rose will take executive responsibilities of co-owner Mohsin Issa as he steps back from his leadership role.

UK supermarket group Asda said on Friday it returned to a pretax profit in 2023 even though it lost market share to rivals in that period.

Asda has reported that its underlying sales rose 1.4% in the first quarter, marking a slowdown from a growth of 2.2% in the previous quarter.

The UK’s third largest supermarket group Asda has refinanced over £3.2 billion of debt, pushing most of its maturities into the next decade.

Asda reported a 24% rise in annual earnings that reflect a 7.1% rise in total sales from 2023, and added that it had cut its debt.

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