Asda has abandoned plans to introduce new staff uniforms next year as the struggling supermarket redirects resources towards cutting prices and upgrading stores in its turnaround efforts.
The retailer had conducted a six-week trial of redesigned uniforms across 12 stores, testing more breathable fabrics and darker green polo shirts with over 2,600 colleagues. The rollout would have marked the first major uniform overhaul in more than 12 years, with launch originally planned for 2026.
The decision reflects chairman Allan Leighton's strategic shift to prioritise investment in areas that directly impact customer experience and competitiveness. Asda has been losing market share steadily since its debt-fuelled takeover by private equity firm TDR Capital and brothers Mohsin and Zuber Issa in 2021.
Market share has declined from 15 per cent at the time of acquisition to a record low of 12.1 per cent, according to the latest Kantar figures. Recent data shows Asda has been overtaken by Aldi in food and drink sales, with the German discounter achieving 9.8 per cent growth compared to Asda's 9.4 per cent increase.
An Asda spokesperson told Retail Gazette: "Everyone at Asda is focused on getting back on track by lowering prices and delivering the excellent service our customers expect, so we have put this change on hold for the time being."
The spokesperson added: "The feedback we received from colleagues throughout the trial will be used to inform any changes to our store-uniforms in the future."
Leighton last month admitted executives had "some way to go" to boost sales, comparing the challenge to having "Everest to climb". However, he dismissed concerns about market share figures, stating: "Market share doesn't bother me one jot. I'm not bothered about market share at all... Ask me about it in a year's time. Now, it's of no consequence."
The planned investment in price reductions will result in a "material reduction" in profitability this year, according to Leighton. Asda posted pre-tax profits of £180m in 2023 from overall revenues of £25.6bn.
The price-cutting strategy has triggered broader competition across the sector, with Tesco announcing £400m in price cuts in April. Leighton expressed confidence in Asda's position, saying: "We're putting prices down, but at the same time, we're not inflating [prices] at the same rate as everybody else."
The uniform trial had incorporated colleague feedback and featured improved fabrics designed to help with temperature regulation, particularly for colleagues experiencing peri-menopausal and menopausal symptoms. Ten different uniform types were tested across various departments including George, Produce, Pharmacy, Drivers, and Bakery.
First quarter sales excluding fuel dropped 5.9 per cent to £5bn in the four months to 31 March, though like-for-like trading showed a 1.1 per cent improvement compared to the final quarter of last year.
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