Supermarkets giant Asda continues to struggle but its George clothing and homewares brand remains a beacon with sales rising in Q2.
George at Asda
The company’s overall quarterly results showed total revenue excluding fuel falling 0.2% to £5.3 billion with its major supermarkets the main issue as the convenience stores chain, Asda Express, saw 8.6% like-for-like (LFL) sales growth.
That said, while the firm’s overall sales were down, the drop is easing and it was the fourth consecutive quarter in which the decline slowed. That 0.2% drop was actually up 2.9% compared to Q1 2025 and its best quarterly performance since Q1 2024.
As for George, it “continued its strong momentum” with a 2.5% rise in LFL fashion sales. The George brand is clearly a big draw for the business as its sales have continued to rise even as footfall has declined, justifying the retailer’s investment in the label and its test programme for standalone George stores.
In May, Asda opened its first standalone George concept store at Crown Point in Leeds. The store showcases “the best George clothing, homewares and general merchandise ranges in a modern retail setting”. This week it said the concept “has been very well received by shoppers” and Asda is planning to roll out a further 10 stores across the UK next year.
Chairman Allan Leighton said there’s still a lot of work to do to get the privately-held company back to full strength and added that the delayed Project Future £1 billion+ tech project was finally complete. This involved de-linking Asda’s systems from those of former owner Walmart and Leighton said it’s possibly the “biggest IT systems change, certainly in Europe, maybe ever. The cost is material, but largely that is now behind us.”
The disruption it has caused should now end and improvements should be seen in product availability in the months ahead.
