Private equity-owned chain Asda is gunning to become Britain’s top-paying supermarket with an 8.4% wage increase for hourly staff, raising rates to £12.04 nationally and £13.21 inside the M25 from 1 July.
The move is part of a £415 million total investment in retail pay since its acquisition by the Issa brothers and TDR Capital in 2021.
It coincides with the opening of Asda's 1000th store, an Asda Express in Stevenage, as it seeks to become the second-largest grocery retailer in the UK behind Tesco PLC (LSE:TSCO).
The proposed pay hikes would exceed the Government’s National Living Wage and the current Real Living Wage and London Living Wage as recommended by the Living Wage Foundation.
Mohsin Issa, Asda’s co-owner, commented: “This record investment will see Asda become the highest paying grocery retailer in the UK, recognising the hard work of our store colleagues in serving customers every day.
“We want to be a company that people are proud to work for, which is why we are proposing increasing pay for retail and Express colleagues by more than 8% this year.
“As we celebrate our 1000th store opening, I want to thank all our colleagues for their commitment and dedication in bringing Asda’s great value fuel and groceries to more communities.”
Earlier today, it was announced that Mohsin Issa, one-half of the billionaire brothers behind the chain, will be stepping back from the day-to-day running of the business.
In January, Asda’s owners denied allegations that the supermarket was profiteering from fuel prices during the cost-of-living crisis, despite an investigation finding it had increased prices ahead of rivals.