Allan Leighton, the current chairman of Asda, has outlined plans to revamp the business, which he describes as a "reset." Asda's intention to launch a grocery price battle to regain customers has caused around £4bn in losses for major UK supermarket chains like Tesco, Sainsbury's, and Marks & Spencer.

After Asda's announcement of a substantial investment plan, Tesco's shares dropped by 11.5%, with Sainsbury's down by 8.5% and M&S by 7.5%. Leighton, who took over as chairman in November, stated that this new investment "war chest" aims to help Asda recover from declining market share. Asda's market share has fallen from 14.6% to 12.6% since its acquisition by TDR Capital and the Issa brothers in February 2021.

Industry analysts predict that Asda's aggressive pricing strategy will have an industry-wide impact, particularly on rival supermarkets like Tesco and Sainsbury's, as Asda seeks to reclaim lost customers. The focus on price competition may lead to squeezed profit margins for competitors.

Leighton emphasized the need for significant investment to lower prices, enhance product availability, and modernize Asda's stores, intending to regain competitiveness and provide value to customers. The company's strategy is not to focus on short-term promotions but to implement sustainable changes, such as bringing back the "Rollback" price reduction initiative that was first launched during Leighton's previous tenure at Asda in the 1990s.