Data: Asda struggles as Aldi and Lidl thrive on promotion growth

Asda has seen its sales fall by 5.6% in the 12 weeks to 23 March 2025, with its market share slipping to 12.5%, according to the latest data from Kantar.

In contrast, Aldi and Lidl, both gained market share during the period. Aldi’s market share rose to 11.0%, while Lidl’s increased to 7.8%, as their sales grew by 5.6% and 9.1%, respectively.

Tesco also reported strong results, with sales rising by 5.4%, boosting its share of the grocery market to 27.9%, while Sainsbury’s saw a 4.1% increase in sales, lifting its share to 15.2%.

While Asda struggled, Ocado continued its upward trajectory, growing sales by 11.2%, taking a 2.0% share of the market. M&S also positive growth, with its FMCG sales up by 13.1%, driven by its partnership with Ocado.

Despite a late Easter, Kantar’s data indicates that consumers are still spending as they adjust their grocery shopping habits to inflationary pressures.

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Promotional spending reached 28.2% of all grocery sales in March—the highest level for the month in four years. £2.6bn of that was attributed to price cuts, marking a 8.8% increase compared to the previous year.

This surge in promotional activity highlights the intensifying battle among grocers to attract price-sensitive shoppers.

Kantar head of retail and consumer insight Fraser McKevitt said: “While Aldi and Lidl continue to benefit from their strong value propositions, the overall market remains competitive, with supermarkets investing heavily in promotions to entice consumers.”

The decline in Asda’s performance follows its recent push to compete with rivals through aggressive price cuts. In a bid to retain its position, the supermarket slashed prices on over 1,500 products by as much as 45%.

Despite the surge in promotional activity, the rising cost of groceries remains a major concern for UK households, ranking third on the list of financial worries, just behind energy bills and the overall economic outlook.

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