Easter timing blamed for Asda’s sales falling for first time in two years

Asda has reported its first sales decline in two years, blaming timing differences caused by the late Easter period.

The Leeds-headquartered supermarket is already on the back foot following the collapse of its planned merger with Sainsbury’s, but has been backed by owners Walmart.

Walmart chief executive Doug McMillon said: “We are disappointed that the proposed merger of Asda with Sainsbury’s isn’t happening because it would’ve been good for customers and the businesses.

“Asda continues to focus on delivering against our strategy and has built momentum in the business, which is impressive.”

Asda saw a sales decline of 1.1%, excluding petrol for the first three months of 2019. It said if its results were adjusted for the later Easter, it would have delivered a 0.5% like-for-like sales growth. Prior to this it had seen seven consecutive quarters of sales growth, albeit against some weak comparables.

Walmart is now considering their options for Asda that could eventually result in a stock market listing or a sale.

It said that highlights of the quarter included double digit growth on Asda.com and George.com, investment in own brand products, and removing 6,500 tonnes of plastic from its own-brand packaging.

Asda’s chief executive Roger Burnley said: “Throughout the quarter we have maintained our focus and momentum, against an increasingly challenging backdrop and we remain entirely focussed on delivering our strategy, without the benefits the proposed merger with Sainsbury’s would have delivered.

“Our strategy remains as it always has been – winning on price for customers, whilst delivering a consistent customer experience and investing in driving growth where customers care.

“We continue to consult with our colleagues on proposals to increase their base rate of pay, whilst ensuring we have the right people in the right place at the right time for customers.

“But what has got us here, won’t get us where we need to go – with the rate of change accelerating, we have a tough job to do and need to go even faster, and be even more innovative in the solutions we deliver for our customers.

“We cannot be complacent, but I believe that we have the right plan and some amazing colleagues to deliver in this highly competitive market – and I’d like to thank them all for all their hard work.”

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