ASDA is investing an additional £30 million to enhance basic shopkeeping standards after acknowledging a decline in sales compared to its competitors. The supermarket chain reported a 5.3% drop in same-store sales in the second quarter of the year. This decrease has led to a loss of customers to other growing grocery retailers.
Despite the ongoing search for a permanent chief executive, ASDA is determined to improve its shopper loyalty program, which currently has six million customers. The supermarket recognizes the need to address customer complaints about empty shelves and issues with self-scanning tills. These challenges have been attributed to the complexities of separating IT systems from former parent company Walmart following a £6.8 billion takeover in 2021.
Michael Gleeson, the finance chief at ASDA, described the IT transformation project as the largest in Europe. The company has already made significant changes to its payroll, finance, and checkout systems. Additionally, ASDA is working on a renewed trade plan that focuses on enhancing its shopper loyalty program, which lags behind competitors like Sainsbury’s in terms of user numbers for loyalty cards.
The search for a new chief executive continues as former co-owner Zuber Issa sold his stake earlier this year. Meanwhile, Mohsin Issa, the remaining co-owner, will shift his focus to the petrol empire EG Group, leaving him as the sole chief executive of ASDA. Despite the leadership transition, ASDA is pushing forward with its efforts to revamp its operations and improve customer experience.
The need for ASDA to address its shopkeeping issues promptly is evident as competitors like ALDI and LIDL gain popularity for their competitive prices. The supermarket chain must prioritize restoring its market share and enhancing its overall shopping experience to remain competitive in the industry.
In other news, Deliveroo has experienced a surge in order numbers, indicating a return to growth after a challenging period. The company reported a profit for the first half of the year, marking a significant turnaround from previous losses. Deliveroo has expanded its services beyond restaurant deliveries to include supermarket deliveries, contributing to its positive financial performance.
Additionally, the increase in housing repossessions and the impact of regulatory changes on betting firms like Entain highlight the evolving landscape of various industries. While challenges persist, companies are adapting to market conditions and implementing strategies to navigate uncertainties and drive growth.