Asda Warns Sales Recovery Delayed Until 2026 After Walmart IT Split

Asda Warns Sales Recovery Delayed Until 2026 Due to Walmart IT Split Disruption

On 28 November 2025, UK supermarket chain Asda warned that a full recovery in its sales is now likely to be delayed until mid-2026 due to ongoing disruptions following the final phase of its IT separation from former owner Walmart. The company acknowledged that operational challenges during the third quarter have had a significant impact on performance, affecting both physical stores and online platforms.

Asda undertook a large-scale IT overhaul this year, separating more than 2,500 systems previously shared with Walmart. While technically completed, the transition has had lingering effects on store operations, stock replenishment, online ordering, and checkout systems. Customers faced empty shelves, delays in delivery, and recurring technical issues, causing frustration and eroding consumer confidence.

The IT separation also imposed a heavy financial burden. Asda revealed that the total cost of the IT upgrade and system migration reached £1 billion, far above initial estimates. To ease financial pressure, the company sold several properties, including stores and a distribution center, and leased them back, raising £568 million. While this provided temporary relief, long-term financial challenges remain.

Consumer confidence has been particularly affected. When products are unavailable, deliveries delayed, and technical issues frequent, customers naturally turn to alternative retailers. This has left Asda in a relatively weaker position compared to competitors such as Tesco, Aldi, and Lidl, who continue to maintain consistent stock availability and competitive pricing.

Asda’s management stated that the company is focusing on a comprehensive recovery strategy, prioritizing IT system stability, supply chain normalization, and reliable product availability across stores. They are cautiously optimistic that once technical issues are fully resolved, consumer confidence will return and sales will improve gradually. However, they emphasized that the recovery will not be immediate, and meaningful growth is expected by mid-2026.

Overall, Asda’s situation reflects the short-term disruptions caused by a major but necessary decision to separate from Walmart. While this move positions the company for greater independence in the long run, it has temporarily caused operational challenges, financial strain, and competitive pressure. The next few months will be critical for Asda to stabilize operations, regain customer trust, and restore its market position.