Asda own-brand label success helps drive sales rise of nearly 10%

Asda has today reported a 9.6% increase in like-for-like sales during the second quarter, compared to the same period a year earlier, and up 1.8% up on the previous quarter.

The Leeds-headquartered supermarket’s revenues, excluding fuel, were £5.4bn for the quarter.

And the business reports a 14.7% increase in own-brand sales during the quarter compared to a year earlier.

Mohsin Issa, Asda’s co-owner said: “We know thousands of families continue to struggle with the cost of living, and we’re committed to doing all we can to support them.

“This quarter, we have locked the price of over 500 everyday items to help families keep a handle on their budgets, as well as reducing the price of over 200 own-label items by an average of 9% – including fresh fruit, vegetables, cupboard staples and ready meals.”

Michael Gleeson, chief financial officer, added: “The growth in like-for-like sales across the quarter reflects the strength of our customer proposition.

“Whilst we continue to see inflation headwinds in our cost base, wherever we are seeing reductions in commodity prices – such as wheat and milk – we are doing the right thing to pass those savings to our customers wherever we can, particularly in our own brand ranges.

“The integration of 119 stores acquired from Co-Op is now underway and the completion of our acquisition of the EG UK&I estate is on track to complete in Q4 – allowing us to bring Asda’s value in fuel and groceries to even more communities.”

Asda notes that both its clothing and general merchandise business outperformed the wider market during quarter two, with like-for-like sales growth of 2.8% and 6.3% respectively compared to the same period of 2022.

And in online grocery, the business delivered an average of 800,000 orders per week across the quarter, maintaining its position as the UK’s second largest online supermarket.