Asda is facing a deepening decline in sales as rival discount store Aldi makes strides in the UK supermarket landscape. According to Kantar, Asda's sales fell by 5.6% in the 12 weeks leading up to March 23, a steeper drop compared to the previous periods. Consequently, Asda's market share has decreased from 13.6% to 12.5% year-over-year, raising concerns about its position among the top three largest UK supermarkets.

Following the acquisition of Asda by private equity firm TDR Capital and the Issa brothers in February 2021, the supermarket's market share has slipped from 14.8% to the current 12.5%, indicating poor performance. Meanwhile, Aldi has edged closer to Asda, growing its market share from 10.3% to 11% by the end of March. Analyst Clive Black from Shore Capital expressed apprehension that Aldi could soon surpass Asda to become the third largest grocer in the UK.

Efforts to revive Asda by slashing prices, such as the reintroduction of the "Rollback" scheme by Asda chairman Allan Leighton, have not yielded the desired momentum. Despite initiatives to reduce prices and modernize stores, the company continues to struggle. Leighton emphasized the need for a comprehensive transformation, acknowledging that the process may span three to five years. The hastiness in promoting price cuts before the stores are fully prepared to handle increased foot traffic has been highlighted as a misstep by industry experts.