Asda reports 8.4% rise in sales

Friday, 15 May 2009

Asda has reported an 8.4% rise in like-for-like sales during the first three months of 2009.

The supermarket giant said it was winning customers from all competitors, and growing at more than twice the rate of the market.

It claimed to have significantly improved quality, with 80% of products now rated "as good as" or "better" than those of its rivals.

The 8.4% like-for-like rise excludes petrol, the timing of Easter and the impact of leap day in 2008. Unadjusted like-for-like growth was 6.4%.

Asda said it had grown profits ahead of sales due to strong cost management.

In addition to thousands of rollbacks, Asda said it had also introduced a number of permanent deals this year, including 200 health and beauty products for £1, three packs of fresh meat for £10, and 100 frozen products for £1.

Asda said it had invested more than £60m over the past year to significantly improve the quality of its food and clothing.

The supermarket giant also put its progress down to improved customer insight. It said: "Understanding how customer behaviour is changing and being able to respond quickly has never been more important than in the current economic environment. "

In food, Asda reported that the trend back to scratch cooking has seen increased sales in herbs and spices, flour and cake mixes.

Sales through its grocery home shopping website increased by almost 50% compared to the same quarter last year. Coverage has now been extended, with 94% of UK households now able to access the service. It will launch an improved version of the website by the end of June and is also hoping to trial a new dedicated home shopping centre concept later this summer in Yorkshire.

Mike Duke, president and CEO of Asda parent companyWal-Mart, said: "Asda had a standout quarter, leading on price and gaining market share."

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