Supermarket chain Asda has revealed it is to continue to focus on its supplier engagement calling them “partners for growth.”
The company, which works closely with over 3,500 active suppliers for branded and own brand goods, revealed the strategy in the results of owning company Bellco Finco for the year to 31 December 2024 which saw pre-tax profits plunge to £599 million. (2023: £180m). Its losses included a net impairment charge of £378m and exceptional costs of £310m related to its turnaround plan Project Future.
Asda admitted that food sales fell 3.7% like-for-like in 2024, impacted by the challenges of on-shelf availability, weakness in the customer experience and in its price position against competitors.
But it said this had started to recover through better supplier collaboration, improved depot picking and delivery accuracy, investment into additional replenishment hours in store and an improved price proposition.
The company said its supplier engagement strategy plans to achieve world-class business relationships with an “always on” approach to communication.
“Our suppliers are our partners for growth, and positive relationships are critical to achieving mutually beneficial goals, particularly as we progress through our Project Future IT transformation as we separate our IT environment from our previous owners Walmart, and expand our business into the convenience sector,” it said.
“We seek to facilitate efficient ways of working by providing knowledge and support through our dedicated supplier portal, through frequent supplier conferences, and regularly listening to and acting on feedback.”
Suppliers complete annual independent surveys, which it uses to form the basis of supplier workshops across key business areas to find ways to improve its supplier relationships, it said.
In 2024, 95% of its suppliers ranked Asda as “consistently or mostly” following the requirements of the Groceries Supply Code of Practice (2023: 94%).
It also revealed that its Asda Rewards loyalty scheme continued to grow strongly during the year, with there being further opportunity to expand the scheme through working closely with suppliers and other relevant third-party organisations.
The supermarket chain also highlighted that the UK grocery market continues to be highly competitive in the face of a range of challenging macroeconomic factors, including the increase in employer’s National Insurance contributions from April 2025, the introduction of extended producer responsibility, economic uncertainty and geopolitical instability.
