A fall in sales is an unpleasant surprise, but we expect at least part of the 5% drop in February was a strategy of lower prices to stabilise market share over the rest of the year. We expect that
Read MoreCancelling store manager bonuses may hurt morale at ASDA, but Allan Leighton needs to respond to the poor performance in H2 2024. Our view on the credit is
Read MoreAn extension for ASDA to complete its separation from Walmart's IT systems makes sense as Walmart retains an equity interest in ASDA. The project has
Read MoreAppointing a non-executive to focus on growing the convenience business whilst looking for a CEO seems an odd priority to us. However, as
Read MoreThe lost equal pay case (subject to appeal) is a negative for creditors but is manageable for the company. As ASDA will appeal the judgement, there is no
Read MoreA new CEO would want to implement a strategy shift away from price matching with the discounters. Still, after a poor Christmas performance
Read MoreWe mentioned previously that Allan Leighton intends to be “hands-on.” This will reduce the pool of CEOs willing to take
Read MoreWith EG Group dominating the headlines over the weekend regarding IPO chatter later this year, Asda's headlines are more sobering. Following a poor
Read MoreThe competitiveness in the UK Grocery sector is not going away. ASDA is looking to cement its position, while Morrisons is looking to win back customers
Read MoreThe additional €185m loan at ASDA will refinance the GBP300m SSNs maturing in September 2026. The SSN coupon is 4.5%, which will be
Read MoreAllan Leighton has suggested that he may appoint a CEO who is not a traditional grocer, and the attached list has only one
Read MoreASDA will take time to turn around, but we still see significant equity under the bonds. The new Chair’s business plan will be published by
Read MoreThe departure of Stuart Rose as chair is a disappointment in the absence of a new CEO. However, Allan Leighton will take on an executive
Read MoreASDA is slowly clawing back the price support that has hurt margins (for all supermarkets), but there is still a lot of sensitivity to
Read MoreASDA is targeting to finish the implementation of its IT separation from Walmart by mid-February 2025. January will be a busy month
Read MoreThe loss of a senior executive to Morrisons before he even started work at ASDA is not a good look. However, the relative stability of Morrisons is
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Another disappointing quarter for topline, with food revenues -4.8% (-3.0% YTD). The issues in Q2 have not been resolved yet and we expect some further
Read MoreTDR is now formally the majority shareholder in ASDA having completed the acquisition of Zuber Issa’s 22.5% stake. The transaction
Read MoreThe new CEO is the appointment we are waiting for but
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