Asda agrees leaseback deal to raise £568m as sales fall

Asda is selling off 24 stores and a distribution centre - and leasing them back - to raise £568m in what has been called a "sign of weakness" as sales at the heavily indebted retailer continue to fall.

- Sarah Butler

The Leeds-based supermarket group, which is expected to release its latest set of quarterly results next week, has continued to lose market share as sales have fallen despite price cuts and improved stores.

Sales fell 3.9% in the three months to 2 November, according to the latest industry data from Worldpanel by Numerator (formerly Kantar), which indicated a one percentage point drop in market share from a year before.

Asda's parent group slumped to a near £600m loss last year as sales fell and the cost of servicing its debt pile increased.

Clive Black, a retail analyst at Shore Capital, said: "From the outside it looks like a sign of weakness that tangible fixed assets are being sold at this time."