Asda hits out at government for ‘killing confidence’ among consumers

A picture


Asda has criticised the government for “killing confidence” among consumers but blamed “self-inflicted” problems that left gaps on shelves for a big reverse in sales.Total sales at the UK’s third-largest supermarket fell 3.8% to £5.1bn in the three months to the end of September compared with the same period a year before – diving back from 0.2% growth in the previous quarter.

Comparable store sales fell 2.8%.The company said it had struggled with technology problems from a lengthy effort to separate its IT systems from those of its former owner, Walmart.Allan Leighton, the chair of Asda, returned to the business last year to try to revive the business for a second time.He said the supermarket’s fall in sales and market share was “totally self-inflicted” and had put his turnaround plans “back six months”.

However, Leighton also hit out at the government for hindering growth and depressing consumer sentiment.“The country is stuck in reverse,” he said.“They have got to encourage business to invest and they keep hampering that with costs.”He said in order to “sell more stuff” retailers needed “a positive consumer” and the government was “killing consumer confidence because of the fact there is no growth and nobody is investing”.“The government isn’t doing anything to stimulate growth,” he added.

Leighton said the impact of feared business rates changes for large retailers in Wednesday’s budget would be “neutral” for Asda.Official figures last week showed that sales at UK retailers slumped unexpectedly last month as shoppers waited for Black Friday deals, and uncertainty over the budget dampened consumer confidence.Asda’s sales and profits have dived since a debt-fuelled £6.8bn takeover in early 2021 by Blackburn’s billionaire Issa brothers and the private equity company TDR Capital.Aldi is poised to overtake it as the UK’s third-largest supermarket, according to analysts at Worldpanel by Numerator, formerly known as Kantar.

Leighton said problems with its new IT systems had caused availability problems across the business, with clothing and homewares supplied to more than a quarter of its stores hit by problems at a specialist distribution centre.A new grocery home shopping app had proved “more clunky than what we had before”, putting customers off, he admitted.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionLeighton said the retailer had “made good progress” on fixing the IT issues, and availability was back up to appropriate levels.“It’s all behind us now,” he said.“We are pretty confident in our strategy.

”Asda plans to continue its strategy of price cuts.Leighton said “the competition didn’t double down on price” in response to its well-publicised investments in keeping prices down for shoppers.“Our price position is [improving],” he said, claiming Asda was now between 4% and 7% cheaper than its “major competitive set”, such as Tesco, Asda and Morrisons.
recentSee all
A picture

Soon-to-be-axed 7am Manchester-London train will still run – but without passengers

The good news for rail travel between Manchester and London is that a morning train will continue to link England’s biggest cities in under two hours. The bad news: passengers will no longer be able to get onboard.The rail regulator has axed one of Britain’s fastest and most lucrative intercity services, the 7am Avanti West Coast from Manchester Piccadilly to London Euston, as part of a timetable shake-up that will take effect in mid-December.What will heap on frustration for passengers, as well as the operator, is that the exact same train service will continue to run between the stations from 7am each weekday: crewed, fast and empty.The train and staff still need to travel from Manchester as they are rostered to operate subsequent services out of Euston on the new December timetable, under rail’s complex planning

A picture

Jetstar cancels 90 domestic flights across Australia after global Airbus A320 recall

Jetstar has grounded some of its Airbus fleet in Australia and cancelled domestic and international flights after the aerospace manufacturer ordered software changes to thousands of its A320 planes following a mid-air incident.Ninety Jetstar flights were affected on Saturday with disruption expected to continue until Sunday, the airline’s head of flying operations, Tyrone Simes, told reporters at Melbourne airport.Airbus said on Friday it was ordering an immediate software change on a “significant number” of its bestselling A320 family of aircraft, a narrow-body plane which is also used by Virgin Australia and Qantas.Simes said on Saturday Airbus had issued Jetstar with a maintenance directive to reverse a software upgrade that had been installed on some planes and resulted in a malfunction.He said 34 of Jetstar’s 85 Airbus fleet were affected, but engineers could complete the software update on the ground in Australia, which would take about two to three hours for each plane

A picture

More than 1,000 Amazon workers warn rapid AI rollout threatens jobs and climate

More than 1,000 Amazon employees have signed an open letter expressing “serious concerns” about AI development, saying that the company’s “all-costs justified, warp speed” approach to the powerful technology will cause damage to “democracy, to our jobs, and to the earth.”The letter, published on Wednesday, was signed by the Amazon workers anonymously, and comes a month after Amazon announced mass layoff plans as it increases adoption of AI in its operations.Among the signatories are staffers in a range of positions, including engineers, product managers and warehouse associates.Reflecting broader AI concerns across the industry, the letter was also supported by more than 2,400 workers from companies including Meta, Google, Apple and Microsoft.The letter contains a range of demands for Amazon, concerning its impact on the workplace and the environment

A picture

After a teddy bear talked about kink, AI watchdogs are warning parents against smart toys

As the holiday season looms into view with Black Friday, one category on people’s gift lists is causing increasing concern: products with artificial intelligence.The development has raised new concerns about the dangers smart toys could pose to children, as consumer advocacy groups say AI could harm kids’ safety and development. The trend has prompted calls for increased testing of such products and governmental oversight.“If we look into how these toys are marketed and how they perform and the fact that there is little to no research that shows that they are beneficial for children – and no regulation of AI toys – it raises a really big red flag,” said Rachel Franz, director of Young Children Thrive Offline, an initiative from Fairplay, which works to protect children from big tech.Last week, those fears were given brutal justification when an AI-equipped teddy bear started discussing sexually explicit topics

A picture

North Melbourne v Brisbane: 2025 AFLW grand final – live

The AFLW grand final is a sell-out for the third straight year – and the second consecutive season under lights at Ikon Park – with more than 12,500 fans set to watch North Melbourne and Brisbane lock horns yet again.Let’s hope the AFL can find a solution over the next 12 months for a suitable venue that would allow even more fans to be part of what should be a celebration of women’s football as much as the season decider between the competing clubs.The best things come in threes.Hello and welcome to live coverage of the 2025 AFLW grand final between North Melbourne and Brisbane as the pair of powerhouse sides meet in the decider for a third straight season. The premiership ledger over that time stands at one-all, which gives each team an opportunity to claim to be the ‘best of three’ and the standout of the stretch

A picture

Looking for Lando: My crash course at the track where F1 star Norris learned to drive

Monaco, Las Vegas, Singapore. The list of pitstops on Lando Norris’ road to the top of Formula One is like a luxury travel agent’s catalogue.So when I was asked to trace the young man’s journey ahead of a weekend in which he could become the first British champion driver since Lewis Hamilton, my hopes were high.As the taxi pulled up outside the Clay Pigeon Raceway in Dorchester, however, my excitement was taken down a few gears.It may seem an inauspicious place to blood the talent of those who will become some of the most glamorous, fiery competitors in sport, but here, in the shadow of an industrial estate not far from Yeovil, is where a growing number of Formula One stars are made