Channel 5 documentary asks ‘What went wrong with ASDA?’

It was once a go-to supermarket for millions, but the lime green world of ASDA isn’t what it was…

Asda, the third-largest supermarket chain in Britain, is experiencing a decline in market share, signaling challenging times ahead for the once-popular budget brand. Tomorrow a Channel 5 programme delves into the issues plaguing the company, ranging from staff disputes to substantial borrowing and the absence of a CEO.

The narrative covers the acquisition by the Issa brothers and TDR Capital, which led to significant borrowing and high interest payments.

The documentary also tracks the changes within the company that have resulted in a three-year vacancy in the Chief Executive Officer position. Recently, Chairman Lord Stuart Rose, known for reviving Marks & Spencer, has intervened. It remains to be seen whether he can bring about a turnaround in the fortunes of the supermarket chain.

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Asda has traditionally been recognised for its low prices across food, household, clothing and affordable fuel. However, it is no longer as competitive in pricing, both in-store and at the fuel pumps meaning the famous jingle ‘Asda Price’ (1977-) which lyrics included ‘The prices are low, whenever you go…’ no longer apply.

The production also sheds light on the protracted disputes with staff and examines the competitive pressure from the growing presence of discounters Aldi and Lidl.

The origins of the company date back to the 1920s with the Asquith family butchers shop – but it wasn’t until 1965 that the first ASDA branded store opened in the UK based on the stateside Piggly Wiggly superstores. A partnership between the Asquith family and Associated Dairies saw the name devised, ASquith + DAiries.

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In 2004 Asda was named ‘Best Value Retailer’ by The Grocer for the seventh year running and over the years has increased its offerings introducing spin-off stores ASDA Living, also in 2004, and in-store chemists in 1996. In 1999 the company was taken-over by American store chain Walmart, however in 2020 they sold off the company to Issa Brothers and TDR Capital, with Walmart retaining an equity interest.

Of course, over the years many supermarket chains have come and gone, for those of a certain age brands such as Presto, Fine Fare, GEM, Walter Wilson, Safeway, Hintons and Gateways will be stores fondly – and maybe not so fondly – remembered.

ASDA: What’s Gone Wrong?, Wednesday, November 13th Channel 5 at 8pm