Core Viewpoint - Asda is facing significant financial challenges, leading to the sale of multiple supermarkets to reduce its £3.8 billion debt, with the latest deal involving the sale of 24 supermarkets and one depot for £568 million [1][4]. Group 1: Financial Strategy - Asda has sold 20 stores and a depot in Leicestershire to Blue Owl for £467 million, with part of the transaction involving a joint venture with Supermarket Income REIT [2]. - An additional 10 sites have been sold to investment managers DTZ for £101 million, with Asda retaining operational control through a 25-year lease [3]. - The proceeds from these sales will be used to fund ongoing capital investments and reduce net leverage, including addressing a £900 million debt owed to Walmart [4]. Group 2: Debt Management - Moody's analyst Timo Fittig noted that while the deal helps address upcoming debt and preference share maturities, it may increase Asda's long-term debt burden due to additional lease liabilities [5]. - Asda has approximately £1 billion in liabilities to manage by 2028, which includes the significant obligation to Walmart [4]. Group 3: Market Position - Asda's market share has declined to a record low of 11.8%, down from 12.7% a year ago, indicating ongoing struggles in the competitive retail environment [6][7]. - The company is under pressure to implement a turnaround strategy, which includes investments in price cuts and improving product availability [6].