Asda is experiencing a continued decline in sales as the supermarket struggles to compete effectively against its rivals.

The private equity-supported retailer reported a 4.8 percent drop in comparable sales for the three-month period ending in September.

Asda’s chairman, Lord Rose of Monewden, remarked, “I must acknowledge that we have perhaps not been as proactive in our trading approach as necessary. We understand that we’ve lost some market share and momentum.”

As the UK’s third-largest supermarket, Asda’s market share fell to 12.6 percent compared to 13.7 percent the previous year, as per data from Kantar, a market research firm. Over the past year, Asda has faced increased competition from larger grocery chains like Sainsbury’s and Tesco, as well as discount retailers including Aldi and Lidl.

Overall revenues for Asda, excluding fuel sales, decreased to £5.3 billion in the recent quarter, representing a 2.5 percent decline from the same timeframe last year.

Despite the overall revenue downturn, George, Asda’s clothing segment, saw a 4.9 percent rise in comparable sales. This improvement was largely driven by the success of its “back to school” collection, which generated quarterly sales of £180 million.

Recently, Asda announced plans to eliminate 475 positions at its head office as part of efforts to streamline operations. Rose, previously the executive chairman of Marks & Spencer, stated that these job reductions were “a necessary and appropriate decision for the business.”

The company is currently seeking to hire a new chief executive. Rose indicated that the recruitment process is “ongoing” and emphasized the importance of finding the appropriate candidate for the role, suggesting it should be a suitable match for the position.

In September, Mohsin Issa announced his resignation from his executive role at Asda. His brother, Zuber Issa, sold his 22.5 percent stake in the company to TDR Capital earlier this year.

TDR Capital currently owns 67.5 percent of Asda, with Mohsin holding a 22.5 percent stake, whereas Zuber’s share was sold off.