Asda sees growth in luxury foods

Asda, the Wal-Mart-owned supermarket chain, is benefiting from affluent shoppers seeking cheaper food deals as the credit crunch continues to bite. The boost helped the chain grow its share of the grocery market by 0.2% to 16.9% over the 12 weeks to July 13 (TNS).

It has also reported a 6% rise in underlying growth over the period compared to 5% in the previous quarter. This has been driven by a rise in “AB” shoppers at its stores buying more organic and luxury products. In July, it reported that it has seen an 11.2% increase in spend by AB households and that sales on green tea, indulgent pizzas and red wine had rocketed (MW.co.uk, July 14).

The chain has been aggressively promoting its price credentials throughout the year and it is reported to be running a three-day 50p campaign this weekend across staple products such as milk and minced beef.

The news comes as Wal-Mart reports a 17% increase in quarterly profits with net income rising to $3.45bn (£1.86bn)compared to $2.95bn (£1.59bn) for the same period last year.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here