Asda has announced a 4 per cent above-inflation pay rise for 110,000 retail workers, taking its base hourly rate to £13.10 from July 2026 as part of an £80 million investment in frontline staff.

The increase will be delivered in two stages, with hourly pay rising from £12.60 to £12.71 on 1 April before reaching £13.10 on 5 July. Staff working inside the M25 will see rates increase from £13.82 to £13.93 in April and to £14.35 in July.

The retailer said the latest award brings its total investment in store pay to £575 million since its 2021 acquisition by TDR Capital and the Issa brothers. Over that period, hourly wages have risen by about 40 per cent, from £9.36 to £13.10.

According to the company, the move forms part of its ongoing turnaround strategy, which places store operations at the centre of efforts to improve performance and customer experience. The pay rise applies to colleagues across both its supermarket estate and Asda Express convenience stores.

James Goodman, chief people officer at Asda, said store employees remain critical to the group’s recovery plans. “Our store-based colleagues are at the core of our business and the role they play serving customers is central to our Formula for Growth turnaround plan,” he said.

Goodman added that the company was “pleased” to deliver an above-inflation award, describing it as continued investment in its workforce. He also thanked staff for their contribution to improving the business.

Reporting by Retail Gazette indicates the increase follows a previous pay rise in October 2025, when the supermarket lifted its national minimum rate to £12.60. The latest uplift builds on that baseline as the company seeks to remain competitive in attracting and retaining staff.

The same report noted that rival Tesco confirmed a pay increase for its own workforce earlier this month, highlighting intensifying competition among UK grocers to invest in frontline roles. Supermarkets have faced ongoing pressure to balance labour costs with pricing strategies as competition across the sector tightens.

Asda’s latest move reinforces a broader trend of wage growth in retail, particularly for customer-facing roles, as employers respond to labour market pressures and operational demands.

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