Leeds-based supermarket group Asda said on Friday it returned to growth in the current quarter.

Asda reported third quarter trading for the seven weeks to August 18, showing Q3 revenue including fuel up 2.1% year-on-year “marking a return to growth for the first time in more than two years, with the gap to the market at its narrowest since 2023.”

Q3 like-for-like (LFL) food sales were up 0.7%.

Asda is owned 67.5% by private equity firm TDR Capital, 22.5% by Mohsin Issa, and 10% by Walmart Inc.

Asda also reported second quarter results adjusted for Easter year-on-year, showing Q2 revenue including fuel up 0.4% to £6.5 billion and Q2 revenue excluding fuel at £5.1 billion.

Second quarter LFL sales were down 2.3%, with food LFL sales down 1.9%.

Asda executive chairman Allan Leighton said: “Returning to growth in the current quarter for the first time in more than two years is a major milestone for Asda.

“It reflects 18 months of hard work to strengthen our proposition, improving price, availability and the overall shopping experience.

“We saw momentum build in Q2 with stable market share, and we’re now seeing that translate into more customers choosing Asda.

“While this progress is encouraging, we are still in the foothills of recovery. There’s still more work to do as we focus on building a stronger business for the long term.”

Asda chief financial officer Michael Gleeson said: “A challenging geopolitical and economic backdrop continued to weigh on consumer confidence and household budgets during Q2.

“Despite these pressures, our continued investment in price and the overall customer proposition means we continue to make steady progress in our turnaround journey.

“Disciplined cash management together with a robust capital structure gives us a solid foundation to continue delivering our Formula for Growth plan in the second half of the year.”