“ASDA will be glad this year is over” is the verdict of retail analysts, even if the supermarket’s chief executive Andy Clarke is expecting a tough 2016.
Mr Clarke is “cautiously optimistic” that Asda’s sales will gradually improve, but said it “is likely to be another tough and competitive year for the sector as a whole”.
While all of the Big Four supermarkets have been under prolonged pressure, from each other and from the growth of Aldi and Lidl, Asda’s sales have been worst affected in 2015.
Retail analyst Phil Dorrell, a partner at Retail Remedy, was scathing about the reasons for the Walmart-owned groups difficulties.
“The torrent of knee-jerk tactics centred on price and cost cutting tells you all you really need to know about the leadership vacuum Asda is currently experiencing,” he said.
“Asda is not a bad shopping experience, with some great offers and a decent level of service despite staffing cuts but it just feels soulless.
“Project Renewal brings range rationalisation, or more accurately, range slashing with a heavy dose of prejudice. It also brings price cuts but how this differentiates a retailer from its competitors is questionable.
“We want to see something that makes Asda stand apart from the increasingly convergent strategies of the grocers.”
There are two senior appointments joining Asda’s management team – former Sainsbury’s executive Roger Burnley, who will start his role as chief operating officer in October, and Walmart marketing specialist Andy Murray, who arrived last week.
Mr Dorrell added: “If Andy Clarke uses Andy Murray’s marketing talents wisely, there could be a challenge to the ingrained price-led strategy.
“Roger Burnley is inheriting a house built on sand with few seasoned team players and a leadership team who have either overseen the current strategy vacuum or have at least been complicit in its demise.”
