Does Walmart Own Asda in 2026?

No, Walmart no longer owns UK supermarket chain Asda as of February 2021. After purchasing Asda in 1999 and controlling it for over 20 years, Walmart sold the company to billionaire Issa brothers in a £6.8 billion deal. However, Walmart does still retain a minority stake in Asda even after giving up majority ownership.

This guide will give you a deep dive into Walmart‘s eventful history as Asda‘s parent company – from the acquisition, to struggles in the UK market, to the recent sale. We‘ll also look at what the future holds for the relationship between these retail giants. Whether you‘re a consumer, comparison shopper, or picky grocery shopper, read on to learn all about Walmart and Asda!

A Thorough History of Asda Supermarkets

Let‘s start at the beginning – the founding of Asda way back in 1965. That year, two heavyweight family-owned retail businesses joined forces: the Asquith butcher shop chain and Associated Dairies grocery company.

The Asquith family had operated over 150 butcher stores across Yorkshire and the north of England since the 1920s. Meanwhile, Noel Stockdale built up Associated Dairies through acquisitions during the post-war supermarket boom.

With the Asquith brothers‘ expertise in quality meats and Stockdale‘s know-how in consumer goods, the merger created a powerful player in UK grocery retail. The new company name Asda was derived from a combination of Asquith and Dairies.

By 1969, Stockdale had acquired the remaining stake from the Asquiths to become Asda‘s sole chairman. He rapidly expanded the supermarket chain over the next 20 years.

Here‘s a quick snapshot of how the company evolved from the 1960s to 1990s:

• 1965: Asda founded with merger, first store opens in Wakefield, Yorkshire

• 1967: Asda opens first in-store butcher counters

• 1974: 50th Asda store opens, doubling store count in 5 years

• 1977: Asda launches first own-brand products

• 1985: Asda opens 100th store and achieves £1 billion in sales

• 1987: Asda trials one-stop shopping with non-food ranges

• 1992: Asda becomes UK‘s third largest grocer after acquiring Gateway and MFI brands

• 1997: Asda achieves over £5 billion in sales with 200+ stores nationwide

However, Asda‘s ‘pile it high, sell it cheap‘ expansion came at a cost. By the 1990s, the company had amassed over £1 billion in debts. After restructuring and eliminating these debts by 1995, Asda was ready to explore potential mergers with other retailers.

Walmart Makes a Blockbuster Purchase of Asda in 1999

Fast forward to 1999 when Walmart stepped in with game-changing acquisition ambitions. After intense bidding against rival Kingfisher, Walmart purchased Asda in July 1999 for a staggering £6.7 billion. It was a huge moment catapulting Asda into the global big leagues with Walmart‘s backing.

For Walmart, buying Asda provided a major foothold in the UK and Europe where it had long envisioned expanding. Asda‘s large hypermarket stores, everyday low prices strategy, and significant market share of over 19% mapped closely to Walmart‘s model.

"We believe that together with Asda, we can bring a new dynamic and strong competition to UK retailing," said Walmart‘s CEO after the takeover.

With its new parent company, Asda gained advantages like:

• Purchasing scale – Walmart‘s size gave Asda greater buying power with suppliers

• Infrastructure – Asda benefited from Walmart‘s state-of-the-art technology and systems

• Best practices – Applying Walmart‘s logistics, supply chain and operations expertise

• Capital – Access to funding from the world‘s largest retailer for expansion

Walmart kept Asda‘s executive team in place, with CEO Archie Norman remaining at the helm initially. But over the next few years, the American owner reshuffled leadership installing new executives to drive strategy.

They also restructured the organization to integrate Asda into the global Walmart empire. For British employees, this meant adopting Walmart‘s focused workflow and accountability.

While jobs didn‘t disappear overnight, the contrast from the previous family-run Asda was jarring for some long-term staffers. However, many welcomed the reduction in bureaucracy.

Mixed Results: Walmart‘s Two Decades of Ownership

Walmart‘s ownership of Asda spanned over 20 years from 1999 to 2021. It was a period filled with changes, challenges, expansions and contractions. Let‘s explore it year-by-year:

2000 – Walmart rolls out its everyday low pricing to Asda, undercutting competitors on basics like bread and milk.

2001 – Asda launches low-price George clothing range, which evolves into one of its most popular own brands.

2003 – With strong sales growth, Asda announces 5 new store openings and plans for over 200 more.

2004 – In its biggest single expansion, Asda opens 25 new superstores creating 12,000 jobs.

2005 – Asda trials Walmart‘s stores-within-a-store concept, launching George mini boutiques.

2006 – After continued clashes with Walmart, CEO Tony De Nunzio steps down. Andy Bond takes over.

2007 – Buoyed by George‘s success, Asda opens its largest George store with over 60,000 sq ft of fashion.

2008 – Andy Bond resigns amid slowing sales during global recession. Walmart alum Andy Clarke takes over.

2010 – Asda adopts Walmart‘s famous "Save Money. Live Better" slogan aligning branding.

2011 – Grocery market share slips to 17.6% putting Asda behind rivals like Tesco.

2016 – After sales decline for 3 consecutive years, Asda drops Walmart slogan for new approach.

2017 – CEO Andy Clarke resigns after sales miss targets again. Roger Burnley appointed as new head.

2018 – After rejecting merger with rival Sainsbury‘s, Asda commits to growing standalone business.

2019 – Asda trials new store formats, investing £80m to update aging supercenters.

2020 – Walmart says it will sell Asda after 20+ years, appointing advisors to oversee sale.

2021 – Walmart sells majority stake in Asda to billionaire Issa brothers for £6.8 billion.

Overall, Walmart struggled to replicate its US success story at Asda. The UK market presented different challenges that Walmart seemed unprepared for even after acquiring an established local player.

Culturally, Walmart‘s regimented approach was sometimes at odds with Asda‘s legacy Employee forums and town hall meetings aimed to keep staffers onside through changes.

From a consumer perspective, Asda‘s prices remained competitive but the stores often felt dated compared to fresher rivals like Tesco Metro. Sparse Walmart-esque interiors didn‘t align with evolving British tastes.

Strategic missteps also plagued the relationship, like a poorly executed click-and-collect rollout in the 2010s. And Asda was slow to build an online grocery operation, now a major sales channel.

But it wasn‘t all bad – bright spots like Asda‘s George clothing line flourished under Walmart. And heavy investments were made to revamp aging stores with new layouts and offerings.

Overall though, Asda largely treaded water. Walmart‘s struggles to grasp the UK market ultimately led it to sell.

Walmart Sells Asda to Billionaire Issa Brothers in 2021

In October 2020, Walmart announced plans to sell Asda, officially starting the search for a buyer. After considering options, Walmart chose the Issa brothers‘ EG Group as the buyer in a £6.8 billion deal finalized in February 2021.

Zuber and Mohsin Issa were self-made billionaires who built EG Group from one gas station in 2001 into a huge nationwide petrol station and convenience store chain.

The brothers had experience doing business with Walmart, operating Asda forecourts and supplies. But Asda represented their first major foray into grocery retail.

For Walmart, the Asda sale price provided funds to redeploy elsewhere. And it could refocus efforts on more promising markets like India where growth potential was far greater.

EG Group had expansion plans for Asda that aligned with Walmart‘s hopes. The new owners aimed to open 200+ Asda convenience stores for expanded grocery access.

They also wanted to learn from Asda‘s food expertise to enhance EG Group‘s own offerings beyond fuel. Asda would benefit from their experience in complementary areas like fresh food-to-go.

So rather than a full break, the deal ensured an ongoing relationship between the companies. And Walmart maintained a financial stake in Asda moving forward.

Walmart Retains Commercial Interests and Equity in Asda

Although Walmart no longer holds a controlling ownership position in Asda, the US retail giant continues to share close ties with its former UK subsidiary.

According to Walmart‘s 2021 annual report, it retains a minority equity investment of around 15% in Asda. So Walmart still has a financial interest in Asda flourishing under its new ownership.

Walmart also has an ongoing commercial relationship with Asda, likely involving supply agreements, wholesale arrangements, or continued back-end support. This builds on years of infrastructure links between the companies.

Additionally, the deal granted Walmart a seat on Asda‘s Board of Directors. So it will still have a voice in strategy and governance through board representation.

"Asda is an exceptional business and we‘re proud to have played a role in building it into one of the UK‘s leading grocery and retail companies," said Walmart‘s CEO on the sale.

This suggests Walmart views the sale as an opportunity to unlock Asda‘s potential rather than abandoning the business altogether.

The Future: What‘s Next for Asda and Walmart?

Asda is bound to evolve under its new owners, guided by the Issa brothers‘ vision. They will likely ramp up convenience stores and continue modernizing aging Asda supercenters.

Integrating retail capabilities with EG Group‘s established fuel, foodservice and fresh expertise could lead to innovative offerings. And further geographic expansion could be on the horizon.

For Walmart, focusing on high-growth markets like India is paramount. But it will keep close tabs on Asda through its board seat and commercial ties.

If Asda gains ground under its new leadership, don‘t be surprised if Walmart looks for opportunities to deepen the connection. An eventual full or partial re-acquisition down the road can‘t be ruled out!

So while the dynamics have certainly changed, the storied relationship between retail titans Walmart and Asda is far from over. This breakup could lead to exciting new chapters for both brands.