Walmart figures show depth of Asda’s sales slump
ASDA has reported a 4.5% fall in like-for-like sales the same day as its market share dropsto its lowest point in a decade.
The drop is smaller than last quarter, when sales fell 4.7%, but the supermarket chain’s Q3 trading results showed a “challenging” period according to chief executive Andy Clarke.
The Leeds-based supermarket, owned by US grocery giant Walmart, is celebrating 50 years this year, but has been dogged by sales declines as discount retailers encroach upon its market share.
This morning Kantar Worldpanel results showed that Asda had lost even more ground to Lidl and Aldi, who have more than 10% of the market between them for the first time.
Asda’s market share is at its lowest point in a decade, with 16.4% of the £2bn-a-week grocery market.
Asda’s quarterly like-for-like sales under chief executive Andy Clarke, since 2010:
Speaking in London today, Asda chief executive Andy Clarke said: “There’s no doubt this represents another challenging quarter.
“Sales volumes remain under pressure from price deflation and the intensely competitive background remains throughout the food sector.
“Having said that, we have the financial strength and clear plan to sustain us through this period, while we take appropriate and considered action to further strengthen our competitive position.”
Mr Clarke launched Project Renewal last month, an 18-month programme which will “focus on the core business.”
He said that the “volatile” grocery market meant that Asda needed to get back to a ‘simpler way of doing business’ and 95 large stores were given a refresh as part of the plans.
Next year chief operating officer Roger Burnley will start, to complement the team including Mr Clarke and chief finance officer Alex Russo.
Mr Russo highlighted successes of the company, including a continued growth in online grocery, which were up 6% in the quarter. George.com clothing sales grew ahead of the market and were up 30%.
