Asda sees Q1 sales grow 3.4%
Walmart has reported its financial returns for the first quarter of 2018, including results for Asda which show that its sales saw a 3.4% like-for-like growth.
The Leeds-headquartered Big Four supermarket is currently in talks about merging with Sainsbury’s to create the largest grocery firm in the UK. However, when taking Easter trading into account for the period, Asda’s like-for-like sales grew just 1%.
Asda President and CEO, Roger Burnley, said: “Our Q1 performance – even when adjusted for increased sales from an early Easter – represents genuine momentum with four consecutive quarters of growth. During the first three months of the year, we have continued to invest sensibly where it matters most to our customers with lower prices, innovation in our Own Brand and further improving their shopping experience whether in store or online.
“Whilst we are not complacent, we are positive about our growing momentum and excited by the opportunity that our proposed merger with Sainsbury’s PLC offers to accelerate our successful strategy and go further, faster.”
Walmart President and CEO, Doug McMillon, added: “Recently, we took some strategic actions to further position our portfolio for long-term growth. We were pleased with the response of our colleagues in the UK following our announcement of the proposed merger of Asda with Sainsbury. We believe this proposed combination is good for customers and colleagues as well as shareholders.
“In the UK, we saw sequential improvement in the business as comp sales increased for the fourth consecutive quarter. We continue to remain focused on improving the customer experience in our stores and providing value for customers by investing in lower prices.”
Asda said that during Q1, it had achieved 8.3% growth in online grocery sales and 21.9% growth in George.com sales and introduced scan and go in 100 stores.
The supermarket also began testing new Walmart technology – a parcel tower in its Trafford Park store – which allows click and collect customers to pick up a package in 60 seconds.
Today, the Competition and Markets Authority (CMA) launched its preliminary ‘invitation to comment’ phase, asking all interested parties to submit to the CMA any initial views on the impact that the proposed merger could have on competition in the UK. Views need to be provided by Monday 4 June.
This invitation to comment is the first part of the CMA’s information-gathering process, in advance of the CMA’s formal investigation starting. The CMA is also likely to proactively contact companies and organisations that are active in the markets affected by the merger, or have valuable insights or evidence that could assist the CMA’s investigation, such as suppliers, competitors, industry bodies and consumer organisations.
