Asda grew like-for-like food sales by just 0.1 per cent in its third quarter, a sharp slowdown that landed days before David Potts took over as chief executive and inherited a turnaround losing momentum.

The figure, published Friday, covers the 13 weeks to the end of September. Asda had already reported 0.7 per cent like-for-like food growth for the seven weeks to mid-August, so the full-quarter result shows that early uplift tailed off almost entirely.

The timing matters for practitioners watching the chain's leadership. Allan Leighton, who led Asda through its 1990s heyday, returned as executive chairman in November 2024 to run the turnaround. He stepped back to a non-executive role last week, and Potts — a former Morrisons chief executive who previously ran Tesco's Asian business — started as CEO on Tuesday.

In August, Leighton declared the group was in the "foothills of recovery" after it posted like-for-like sales growth for the first time in more than two years. The third-quarter numbers test that framing.

Where is growth actually coming from?

Not primarily from food. Total revenue, including fuel, rose 3.1 per cent year on year across the 13 weeks to September. Online sales drove the performance, up 6.9 per cent like-for-like.

The grocer said it is working to keep prices low for customers under budget pressure. Asda's own income tracker puts British families' budgets at a six-month low.

Finance chief Michael Gleeson framed the result as strategy delivery. "The work we've done through the period to deliver against our strategy was reflected in our third-quarter performance," he said.

"Asda's key strength is the breadth of our business, spanning food, clothing, fuel, pharmacy and other services. This means we can meet more of our customers' everyday needs and gives us more opportunities to grow," Gleeson said. "Our disciplined approach to managing costs and cash means we can keep investing in value today and in sustainable growth in the long-term."

How far behind are the rivals?

Further data suggests the slide has continued. Industry figures from Worldpanel show Asda's total sales fell 0.5 per cent year on year to £4bn in the 12 weeks to November, with suggestions that takings have slipped back into negative territory in recent weeks.

Every major competitor grew over the same period:

• Lidl: sales up 6.6 per cent
• Morrisons: sales up 2 per cent
• All other rivals also posted growth

That gap — Lidl adding 6.6 per cent while Asda shrinks half a point — defines the scale of the recovery Potts must deliver.

What is Potts changing first?

The new chief executive has told staff to focus on the in-store experience. He has instructed general managers to open more staff-operated checkouts across the estate.

"We're making it harder than it should be for customers to get what they want, move around the store and pay for their shopping. We need to change that, starting now," Potts told staff.

He has also moved on price. On Thursday, Asda announced a 4p per litre cut on petrol and unleaded diesel across its 321 fuel forecourts, a measure the grocer said would save the average family £2.20 per tank.

The sequence is telling: before publishing any formal strategy, Potts has attacked two visible frictions — checkout availability and pump prices — while the sales data shows the food business he must fix barely grew in the quarter before he arrived.