Asda reports sales growth for sixth consecutive quarter
Asda has reported its sixth consecutive quarter of sales growth, with like-for-like sales increasing by 2% in this year’s third quarter.
These results, released by parent company Walmart relating to the period 1 July to 30 September, follow a 0.4% increase in like-for-like sales for the three months to the end of June.
The Leeds-based supermarket chain achieved this growth after focusing on its own-label products, including the expansion of Asda’s Free From range to include 113 new lines.
As a result, Asda welcomed an additional 115,000 customers through its doors in Q3.
This growth follows on from the CMA launching an investigation into the the £15bn proposed merger of Asda and Sainsburys.
The CMA is assessing whether the merger could lead to a worse outcome for shoppers through higher prices, a poorer shopping experience, or reductions in the range or quality of products offered.
Doug McMillon, Walmart President and CEO, said: “In the U.K., comps of 2% marked the sixth consecutive quarter of growth, and online grocery sales outpaced the market, according to Kantar.
“Additionally, we received follow-up communication from the competition authorities related to the proposed merger of Asda and Sainsbury’s. This latest statement was in-line with our expectations, and we will continue to proactively work through the process with the CMA.”
Roger Burnley, Asda President and CEO, added: “In a challenging third quarter for the market we continued to focus on the areas that we know are important to our customers and deliver on our strategic priorities.
“As a result we were pleased to welcome an additional 115,000 customers through our doors and outperform the market for the second quarter running. During the quarter we continued to grow our distinct Own Brand offer, including the expansion of our Free From range to include 113 new lines, as well as expand scan and go to 192 stores.
“We were delighted to work with Denbies in Surrey to launch our first English Sparkling Wine and we also opened our first two food re-distribution centres in the East Midlands and Leeds as part of our ground-breaking Fight Hunger Create Change programme with FareShare and the Trussell Trust.
“As we enter what will undoubtedly be an incredibly competitive festive trading period, our stores are fully prepared to bring Christmas home for our customers. I would like to say a huge thank you to our fantastic colleagues for all their efforts to make shopping with Asda easy and friendly over the festive season.”
