5 ways Asda is trying to fight back

ASDA has struggled with five consecutive quarters of falling sales, as the continued growth of the discount supermarkets and the focus on price from its Big Four competitors have hit its figures.

It has sought to respond, focusing on long-term changes that will create a better business for the future:

1. The launch of Project Renewal
Before Christmas, in anticipation of its difficulties continuing, Asda launched Project Renewal to refocus on its supermarkets and scale back the development of its click-and-collect services

2. Getting tighter control of its supply chain
Earlier this month it bought two Yorkshire meat businesses, with a combined turnover of £450m, which were key parts of its supply chain

3. Adding to its product network
It has joined European Marketing Distribution, which brings manufacturers and retailers together to develop new markets within the group’s European network

4. Investing in price
It has taken what it describes as “radical action” by investing a further £500m in price cuts, on top of a £1bn, five-year programme already in place

5. Reducing head office costs
Up to 10% of its 3,000 staff based at its Leeds headquarters face redundancy as the supermarket group restructures its operations