Asda hails progress in turnaround strategy as like-for-like sales grow by 0.8%
Asda has said it is making progress in its Formula for Growth turnaround plan after delivering improvements in availability and price.
The supermarket has reported that like-for-like sales in its first quarter ending 31 March edged up 0.8% following a decline of 4.2% in the previous three month period.
Asda attributed the performance to strong operational inputs, with availability maintained at an eight-year high of over 95% throughout the quarter. It also said that continued investment in key categories widened its price advantage against other full-range supermarkets.
Asda Express convenience stores delivered their seventh consecutive quarter of growth during the period, with new partnerships with third-party food brands expected to drive further momentum in its small stores.
Meanwhile, Asda’s total revenues excluding fuel dropped by 1.5% to £5 billion
Allan Leighton, Asda executive chairman, said: “In our previous trading update, I described performance as edging forwards and this continued through Q1, finishing the quarter broadly where we expected to be.
“This progress is due to the stabilisation of our core systems, which has enabled us to deliver ongoing improvements in availability, price and customer satisfaction.
“It has also given us the confidence to launch ‘Take a Fresh Look’ – an open invitation for shoppers to come back and give Asda another go. We’re confident they’ll see the difference straight away when they do.”
Michael Gleeson, Asda’s chief financial officer, said: “We traded the first quarter in line with expectations and significantly improved vs Q4, supported by continued operational stability across our core systems, giving us the platform to operate more consistently and effectively.
“This was underpinned by continued disciplined cash management and a strong capital structure, with all debt maturities addressed through to 2028. Looking ahead, we expect to run the business with greater consistency and build on the progress made in Q1 as we deliver our Formula for Growth.”
Asda has also announced that it is teaming up with Ocado to make major upgrades to its online grocery service. This will include the roll out Ocado’s Smart Platform technology solutions across its website and mobile app, in-store picking and home delivery service.
