13 May 2008


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Asda like-for-likes up 5% despite tough climate


Asda

Supermarket group Asda delivered a strong first quarter thanks to an increase in customer traffic driven by lower prices and strong seasonal events, parent company Wal-Mart said today.

Like-for-like sales, excluding petrol, increased by 6.4%, taking into account an early Easter and the effect of the extra leap day. Stripping these effects out, the growth figure was 5%.

Total sales increased in the “high single digits” for the period to 31 March 2008.

Asda outperformed the market for the eighth consecutive quarter, said Wal-Mart, with market share up by 0.3% year-on-year in the 12 weeks to 20 April.

Wal-Mart also revealed a “healthy” sales performance from Asda in April, with strong fresh food sales.

The retailer also saw an increase in the sale of Extra Special, Asda's premium brand own label food, with sales up by more than 30% year-over-year.

Asda opened three new food stores in the first quarter – in Bridgend, Andover and Ballyclare – all of which it said had outperformed targeted sales levels.

Mike Duke, Wal-Mart International vice chairman, said: "Asda has continued to win in the United Kingdom – delivering a strong first quarter, with thirty basis points of market share growth, despite a challenging economic environment.

"Although we expect the UK to remain a challenging economy and retail market over the rest of the year, we believe that our strong pricing agenda, backed by a cost reduction programme leaves us well positioned to continue to make market share there."

Asda president and CEO, Andy Bond said: "Whilst today’s results are encouraging, we mustn't become complacent – especially in the current economic climate.

“We have a duty to lock down inflation by working with our suppliers, to cut costs to ensure that our customers are always getting the best possible deal on their weekly shopping."

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