UK supermarket chain Asda has announced its annual earnings for 2025, with losses totalling £989 million after price cuts intended to win back customers.

The private equity-backed group’s pre-tax losses grew from £599 million in 2024, coupled with a 33 per cent fall in earnings to £761 million, according to a Companies House filing on Friday.

Total sales, including fuel, fell 3.4 per cent to £25.9 billion.

Under executive chairman Allan Leighton, who previously served as Asda’s chief executive from 1996 to 2000, Asda has pushed to become between five and ten per cent cheaper than its main rivals. Leighton warned in March 2025 that the plan would “materially reduce” its 2025 profit, adding that rebuilding the supermarket would take up to five years.

Its pre-tax losses were also impacted by a series of one-off costs including, a £284 million bill for its IT overhaul following its separation from former owner Walmart and a £344 million non-cash impairment after a revaluation of its property portfolio.

The supermarket has continued to lose market share in recent years, falling from 14.3 per cent in 2021 to 11.5 per cent, according to Worldpanel by Numerator data.

In a statement, an Asda spokesperson said that the reported losses do not reflect the underlying financial strength of the business, adding that the it retains a strong balance sheet and capital structure. Asda currently has £1.3 billion cash on hand and £2.1 billion in total liquidity.

The supermarket’s revamp plan is continuing in 2026, announcing a major in-store revamp and lower prices in mid-May, followed by a warehouse automation plan announced earlier in June.

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