Asda’s sales grew in the “low single digits” for the second quarter of 2010, and continue to make “good progress” towards its strategic goals, according to US owner Walmart.
However Kantar Worldpanel has reported Asda’s market share dropped slightly in the 12 weeks ending 11 July.
In May, Asda announced its intent to acquire from Dansk Supermarked A/S, the Netto Food stores located in the UK. These stores will bring many new locations and a platform for smaller store formats throughout the UK.
Asda’s gross margin as a percentage of sales increased in the second quarter on a mix shift towards higher-margin George and general merchandise. George had a particularly strong quarter, with strong sales of World Cup related merchandise and a 100 day quality guarantee.
Walmart International president and CEO Doug McMillon, said: “Expenses as a percent of sales declined slightly as the Asda “we operate for less” programme continues to deliver efficiencies. As a result, operating income grew faster than sales.
“On e-commerce, Asda’s second dedicated home shopping centre will open next week and will provide enhanced coverage in an area of low market share for Asda.
“Asda’s customers are facing recently announced tax increases and cuts in government spending. These are likely to cause our UK customers to face a challenging 12 to 18 months. Recent price reductions on high volume staples such as milk and eggs and the guaranteed lowest basket price shows Asda’s commitment to provide the value our customers expect and trust us to deliver.”
Source: Walmart
