ASDA - comment
The fall in market share will be a drag on ASDA’s performance, but continued falls in inflation will nudge consumers towards choice over price. Cost cuts will need to do the heavy lifting for now as price support will remain elevated. Not a crisis, but the resilience in the discounters will delay price recovery for ASDA. We are not prompted to change our model yet.
ASDA lost ground to Lidl and ALDI in the last 12 weeks (1% fall from 13.8% to 12.8%); this comes after a 40bp gain in the previous 12-week period.