Asda has announced it recorded record online grocery sales in 2023, delivering 39 million orders with a sales value of £3.2bn, and ending the year with its highest ever online grocery market share of 20.8%.

This was 2% ahead of the third-ranked supermarket and Asda’s strongest market share performance since June 2020, prior to which the pandemic drove unprecedented online sales. Online now accounts for 18% of Asda’s total grocery sales – an increase of 8% since 2020.

The strong online performance was driven by continued investment in price, quality and innovation, with Asda maintaining its position as the lowest-priced online retailer throughout 2023. The supermarket has also significantly expanded its qCommerce proposition with Deliveroo, Just Eat and Uber Eats to cover more than 1,200 individual store combinations.

Furthermore, more than 330 stores now offer an Express Delivery service, giving customers within a three-mile radius the opportunity to shop Asda’s full online range of 30,000 products for delivery in under an hour.

Asda today filed its annual accounts at Companies House for the financial year ending December 2023, in which it delivered a 24% increase in adjusted EBITDA after rent to £1.078bn driven by 5.4% like-for-like sales growth, from its continued focus on value for customers, and the impact of strategic acquisitions in the convenience sector.

Michael Gleeson, Asda’s Chief Financial Officer, said: “We are investing to build a bigger and better Asda bringing our heritage in value to more customers across the UK. Our priority remains growing the Asda business for the long-term through diversifying our offering to ensure customers can shop with us when and how it best suits them. Our online business is key part of our omnichannel offering and it is pleasing to see the investments made in price, service and to expand our digital footprint continue to resonate with customers and drive sales.”

Asda’s ongoing positive performance in online grocery came as it delivered a pre-tax profit of £180m in FY23, compared with a loss before tax of £432m in 2022, reflecting an increase in operating profit and partial reversal of previous impairment provisions. Total sales (excluding fuel) increased by 7.1% to £21.9bn in FY23.

Alongside its ongoing investment in online grocery – as part of its commitment to bring value to more communities across the UK – Asda last month unveiled a £50m store upgrade programme designed to improve the shopping experience for customers in its larger supermarkets and superstores.

Expected to complete by the end of November, the programme will run across 170 stores including 50 larger stores which will see the introduction of new in store services and features as well as brand-new George departments in some locations.

This will complement the completed conversion of about 470 convenience sites acquired from the Co-op and EG UK to Asda Express, an investment which leaves Asda strategically well-positioned in the fast-growing £40bn convenience and £60bn food-to-go markets.

The strength of Asda’s FY23 performance and increased cash generation enabled it to reduce leverage from 3.9 times at the start of 2023 to 3.0 times at year end.

Subsequently, the supermarket’s net debt at the end of Q124 remained at £3.8bn, net of more than £1bn cash on the balance sheet – and the business is fully committed to further deleveraging.

In May 2024, Asda successfully refinanced more than £3.2bn of its debt – reflecting strong demand from investors and pushing out the majority of its maturities into the next decade.