Asda reports “clear improvement” in performance
Asda has reported that its like-for-like sales edged down 0.2% in its second quarter but said this marked a “clear improvement” in performance.
The decline in the three months to 30 June represented a 2.9% step on from its first quarter and the fourth consecutive period of improving like-for-like sales.
The supermarket’s total revenue for the period (excluding fuel) decreased by 0.2% year-on-year to £5.3 billion.
Allan Leighton, Asda’s executive chairman, said: “We saw a clear improvement in performance during Q2, with volumes and like-for-like sales strengthening, driven by better product availability and our material investment in price. This widened the price gap over competitors and firmly re-established Asda as the best-value traditional supermarket.
Subscribe to TRB“This week, we completed the rollout of Project Future, with all stores now operating on our new systems. The collective rate of completion did cause some temporary disruption with product availability and in our online experience, which will impact our sales outturn in the current quarter.”
Asda is continuing to invest in its Rollback initiative to lower prices across its entire range. Since launching the scheme at the end of January, more than 50% of all products have been through or are going through the Rollback cycle, before moving to a new, permanently low Asda Price. The supermarket said the average price reduction of these products is 22%.
Leighton added: “As planned, we expect to exit the year in like-for-like growth as we continue our investment in price to protect our customers from inflationary pressures. As we’ve said from the outset, transforming Asda will take time, but we remain confident in the direction of travel and the long-term potential of the business.”
Asda has also announced that is to resume its Express convenience store opening programme from October with the launch of up to 20 new sites.
