Asda continues its retail sparkle
SUPERMARKET chain Asda continued its growth over the last quarter with market share up and an increase in like-for-like sales of 7.2%.
The Leeds-based business increased its maket share from 16.7% to 17% and said growth had been driven by attracting more customers by lowering prices and improving product quality.
Asda said it was also growing profit ahead of sales and had seen its food volumes accelerate.
Underlying comparable sales, excluding fuel, grew by 7.2%, and after adjusting for Easter grew by 7.9%.
Judith McKenna, Asda’s chief financial officer, said: “We’re pleased with these results as they demonstrate the ongoing health of our business.
“By continuing to be the lowest price retailer and by broadening our appeal, we’re attracting more customers, and increasing our sales volumes.
“Our food business continues to outperform, our home and leisure business has also strengthened, and George clothing has had an excellent spring/summer season.”
Asda has opened 10 stores so far this year, including three recently acquired smaller stores from the Co-op in Lancing, Pershore and Wellington, which opened earlier this week.
As a result, Asdasaid it was on target to create the 7,000 new jobs it promised by the end of the year.
To support grocery home shopping, Asda has opened a new dedicated picking centre in Morley, Leeds, creating 200 jobs.
The 50,000 sq ft centre is split over two levels and serves customers across West Yorkshire, replacing the service previously operated by five local Asda stores.As a result the long-term capacity for delivery slots in the area has increased four-fold.
Ms McKenna added: “Consumers continue to be somewhat cautious, with many people choosing to use any extra money they have to pay down debt and save more.
“This is not going to be a straight line economic recovery, however, in this environment, we are well placed to continue gaining market share by giving customers what they want – great products at low prices.”
