Supermarket reaches highest-ever online share as overall sales rise 7 per cent

It's been a year of growth for Asda

It’s been a year of growth for Asda

Asda has reported record online grocery sales for 2023.

The supermarket said it delivered 39 million orders with a sales value of £3.2bn, ending the year with its highest-ever online grocery market share of 20.8 per cent. That represents Asda’s strongest market share performance since June 2020.

Online now accounts for 18 per cent of Asda’s total grocery sales, an increase of 8 per cent since 2020.

The grocery chain said its strong online performance was driven by continued investment in price, quality and innovation, stressing that it maintained its position as the lowest-priced online retailer throughout 2023. It has also significantly expanded its qCommerce proposition with Deliveroo, Just Eat and Uber Eats to cover more than 1,200 individual store combinations.

More than 330 stores now also offer an Express Delivery service, giving customers within a three-mile radius the opportunity to shop Asda’s full online range of 30,000 products for delivery in under an hour.

Full-year growth

In its accounts for the financial year ending December 2023, Asda posted a 24 per cent increase in adjusted EBITDA after rent to £1.078bn, driven by 5.4 per cent like-for-like sales growth. It put that down to a continued focus on value for customers, and the impact of strategic acquisitions in the convenience sector.

The company delivered a pre-tax profit of £180m in 2023, compared with a loss before tax of £432m in 2022, reflecting an increase in operating profit and partial reversal of previous impairment provisions. Total sales excluding fuel increased by 7.1 per cent to £21.9bn.

Michael Gleeson, Asda’s chief financial officer, said: “We are investing to build a bigger and better Asda, bringing our heritage in value to more customers across the UK. Our priority remains growing the Asda business for the long-term through diversifying our offering to ensure customers can shop with us when and how it best suits them.

“Our online business is a key part of our omnichannel offering and it is pleasing to see the investments made in price, service and to expand our digital footprint continue to resonate with customers and drive sales.”