Asda defiant despite big sales fall

ASDA refuses to be blown off course by what it has described as “the worst storm in retail history”, despite its second-quarter sales falling 4.7%.

Chief executive Andy Clarke acknowledged the results were “disappointing” but restated his commitment to the Leeds-based retailer’s long-term strategy.

 

“We continue to navigate a steady course through the worst storm in retail history, despite another challenging quarter,” he said.

“Predicting that 2015 was going to be a volatile year I didn’t expect to report a positive sales figure, but I’m not distracted by the short-term picture. We have an enviably stable business with balanced books and the right strategy to return us to sales growth.”

The Leeds-based supermarket group, which is 50 years old this year, has struggled in recent months as the discount retailers continue to grow market share while West Yorkshire rival Morrisons has stopped its own sales decline.

Asda’s quarterly like-for-like sales under chief executive Andy Clarke, since 2010:

 

Asda’s chief financial officer Alex Russo added: “Behind the negative sales number lies a more positive story for Asda.

“We are maintaining balance in an impulsive market and performing solidly in growth channels, maximising and accelerating our areas of strength while addressing areas of underperformance.”

In November 2013, Asda set out its six strategic priorities to redefine value retailing in the UK over five years. The strategy centres around improving the core business, extending Asda’s reach, and expanding the brand into new markets.

 

The retailer plans to achieve this by investing £1bn in lowering prices and £250m in quality, style and design, and giving more people the opportunity to shop with Asda through the physical development of stores and Click and Collect locations.