In 2023, UK retailer Asda proudly announced its “record online grocery sales,” achieving its “highest ever” online grocery market share of 20.8% by the end of the year. This milestone marked a significant achievement for the supermarket, surpassing the third-ranked competitor by 2%.
The retailer highlighted that it had achieved its strongest performance since June 2020, delivering a total of 39 million orders with a sales value of £3.2 billion. Online grocery sales now account for 18% of Asda’s total grocery sales, reflecting an 8% increase since 2020. This growth in online sales was attributed to Asda’s continued investment in price, quality, and innovation.
For the financial year ending December 2023, Asda reported a 24% increase in adjusted earning before interest taxes depreciation and amortisation (EBITDA) after rent, reaching £1.078 billion. This growth was supported by a 5.4% like-for-like sales increase, driving the supermarket to achieve a pre-tax profit of £180 million in FY23, a significant improvement from the previous year’s loss before tax of £432 million. Total sales (excluding fuel) also saw a notable increase of 7.1% to £21.9 billion in FY23.
Michael Gleeson, chief financial officer at Asda, emphasized the company’s commitment to building upon its success and expanding its reach to more customers across the UK. By focusing on diversifying its offerings and enhancing its omnichannel approach, Asda aims to provide customers with a seamless shopping experience tailored to their preferences.
Gleeson noted, “Our online business is a key component of our omnichannel strategy, and we are pleased to see that our investments in price, service, and digital expansion are resonating with customers and driving sales growth. As we continue to invest in building a bigger and better Asda, our priority remains on long-term growth and ensuring that customers can shop with us conveniently and efficiently.”
Asda’s remarkable performance in online sales and overall financial growth underscores the supermarket’s dedication to meeting the evolving needs of customers and remaining competitive in the ever-changing retail landscape.
