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.