Asda reports quarterly sales growth

Asda’s latest quarterly report has revealed that its progress remains broadly in line with the previous quarter, with net sales increasing 3.6%.

The ‘Big four’ supermarket, which has its headquarters in Leeds, has also seen its comp UK sales, excluding fuel, increase 1.1%. The results were shared in Walmart’s Q3 update. The latest figures show a growth which has slowed since  Q2, when Asda reported a net sales growth of 3.9% and 1.8% UK comp sales growth.

Although Asda’s sales have risen again, the number of trips to its stores fell by 1.4% in the third quarter compared with last year.

Of the performance, Asda said: “We continued to see improved results as customers responded to investments in the value proposition.

“During the quarter, we experienced improved in-store service scores and performance strengthened across our private brand and online grocery offerings.

“Gross profit rate declined primarily driven by commodity price headwinds as well as on-going price investments. We leveraged operating expenses during the quarter through sales growth and continued cost control.”

The results come soon after the supermarket confirmed that Roger Burnley will take to the helm of the UK arm of Walmart in January 2018.

Doug McMillon, president and CEO, said: “Asda delivered positive comp sales again this quarter. The improvements in store experience and price investments are increasing store basket sizes. We’re excited to have Roger Burnley lead Asda into the future as CEO starting next year.

“Over the past year, Roger has been our COO and Deputy CEO and he has a long and distinguished retail career. I’d like to thank Sean Clarke for the tremendous work that he has done over the past year to stabilize the business and position it for growth. Sean has done a lot for our company living in 5 countries over his 21-year career with Walmart.”

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