One of Britain's biggest supermarkets has revealed a near £1billion loss after a turbulent year marked by technical failures, falling sales and an aggressive push to cut prices.
The figures highlight the scale of the challenge facing Asda as it attempts to win back customers and regain market share in an increasingly competitive grocery market.
Asda has recorded a pre-tax loss of £989million in 2025, according to its latest financial accounts.
The figure represents a sharp deterioration from the £599million loss reported a year earlier.
A major factor behind the increase was a £656million one-off charge linked to separating Asda's technology systems from former owner Walmart, which continues to hold a minority stake in the business.
The retailer was also hit by the fallout from a failed IT system upgrade last year, which disrupted stock availability and affected sales during an important trading period.
At the same time, Asda has been pursuing a strategy of cutting prices to attract shoppers back to its stores.
Chief executive Allan Leighton has pledged to undercut rivals by between five and 10 per cent, although he previously warned the move would "materially reduce" profits in the short term.
Asda has been pursuing a strategy of cutting prices to attract shoppers back to its stores
| PAThe company's Asda Price and Rollback campaigns contributed to a significant decline in earnings, with adjusted earnings falling by a third to £761million over the year.
Property portfolio write-downs also weighed on the retailer's financial performance, adding further pressure to the bottom line.
Despite the losses, the supermarket continues to focus on its turnaround strategy as it seeks to rebuild customer trust and reverse recent declines in market share.
Asda has recorded a pre-tax loss of £989million in 2025
| ASDAComparable store sales, excluding fuel, dropped 3.1 per cent on a year-on-year basis.
Despite the mounting losses, the supermarket sought to reassure stakeholders about its financial position.
A company spokesman stated: "The reported loss does not reflect the underlying financial strength of the business and continued powerful cash generation."
Despite the mounting losses, the supermarket sought to reassure stakeholders about its financial position
The spokesman added: "Asda is supported by a strong balance sheet and capital structure, with £1.3billion in cash, £2.1billion of total liquidity at the year end, and the majority of borrowings secured well into the next decade."
The retailer maintains this financial cushion provides scope to pursue its long-term recovery objectives.