Asda experienced a decline in sales during the crucial Christmas trading period, with a 4.2% drop in the 12 weeks leading up to December 28, 2025. This downturn occurred as overall grocery sales hit a record high, indicating a shift in where consumers directed their festive spending.
Key Takeaways
- Asda’s sales fell by 4.2% in the 12 weeks to December 28, 2025.
- Total grocery sales reached a record £13.8 billion in the four weeks to December 28, 2025.
- Discounters saw their largest-ever Christmas market share.
- Premium private label products exceeded £1 billion in sales.
Competitive Landscape
The festive period saw a mixed performance among major grocers. While Asda faced a sales decrease, Ocado emerged as the fastest-growing grocer with a 15% sales increase, capturing 2.1% of the market. Lidl continued its strong performance with a 10% sales rise, securing 7.8% of the market share. Sainsbury’s and Tesco also saw their market shares grow to 16.3% and 28.7% respectively. Aldi maintained its market share at 10.1%, while Waitrose saw a slight increase to 4.7%.
Consumer Behaviour and Market Trends
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, noted that easing inflation provided some relief for household budgets this Christmas. However, consumers made "smart savings and considered choices." Price remained a key consideration, with shoppers increasingly relying on loyalty cards to secure the best deals. Discounters experienced their most significant Christmas market share to date.
Premium private label products proved popular, surpassing £1 billion in sales in December, marking a 9% growth. The highest spending categories were fresh meat (£115 million) and chilled snacks (£80 million). Spending on promotions also rose to 33.3%, up from 32% the previous year, with a notable increase in spending on discounted fresh vegetables.
Record Grocery Sales
Despite individual retailer challenges, the overall grocery market experienced a record-breaking period. Total grocery sales reached £13.8 billion in the four weeks leading up to December 28, 2025, a 3.8% increase year-on-year. Grocery inflation stood at 4.3%, and the average supermarket spend during December was £476, an increase of £15 compared to December 2024.
Sources
- Asda saw sales fall over Christmas period, Retail Gazette.
