Asda hopes for Christmas miracle after sales slump

ASDA has announced another drop in quarterly sales as fierce competition in the grocery market continues.

The retailer announced that sales at stores open over a year, excluding fuel, fell 5.8% in the three months to the end of September, its ninth straight quarter of decline.

However, the supermarket’s latest performance was an improvement on the 7.5% drop recorded in the previous quarter, its worst ever result.

Phil Dorrell, partner at Retail Remedy retail consultants, said that, given today’s results, Asda will be praying for a “Christmas Made Better”.

He said: Sales performance behind competitors and slumping market share are no way to head into the golden Christmas quarter. By now Asda had promised a turn in fortunes thanks to Project Renewal, however an inward-looking retailer will get the same results its always had.

“Steering clear of Black Friday again is the right decision, bringing focus on good value through everyday prices suiting the demographic rather than getting drawn into what has become a fortnight of margin erosion and bringing sales forward.”

Mr Dorell said the “Christmas made better” campaign takes a different approach than its competitors, with a series of short sound-bite ads each promoting a product or range worth heading to Asda for.

“Almost old-fashioned but effective and memorable which is really the point isn’t it?”, says Mr Dorrell.

“It’s early days in what has become a year of board room musical chairs, but it is refreshing to see new appointments being made outside of Walmart to bring a new perspective particularly when that experience has been acquired at Co-op, John Lewis and Sainsbury. This might actually be the trigger for change, finally.”