Asda sees boost in sales

Asda, the Walmart-owned supermarket chain, has enjoyed a second quarter 7.2% boost in sales, attracting new customers with its low prices.

Asda

However, the like-for-like rise, excluding VAT and petrol, is lower than the 8.4% increase it reported in the previous quarter.

Asda chief financial officer Judith McKenna has largely attributed the slowdown to a drop in food inflation.

TNS Worldpanel data also reveals that its market share rose to 17% in the 12 weeks to 12 July, up from 16.7% in the same period a year ago.

By comparison Tesco holds a 31% market share, while Sainsbury’s has 16%.

Asda, the second-largest supermarket chain, claims to have attracted more customers by broadening its appeal, lowering prices and improving product quality.

Its food, home, leisure and clothing range performed particularly well.

Asda is also offering consumers a range of recipes to feed the family for £4. It mirrors Sainsbury’s own Feed your Family for a Fiver campaign.

This year, Asda has opened ten new stores which it claims are performing above expectations.

McKenna says: “Consumers continue to be somewhat cautious, with many people choosing to use any extra money they have to pay down debt and save more.

“This is not going to be a straight line economic recovery, however, in this environment, we are well placed to continue gaining market share by giving customers what they want.”

The supermarket is also set to launch an online community and is improving its online grocery service in a bid to steal share away from rival, Tesco.

Latest from Marketing Week

Marketoonist on GDPR

The Marketoonist

Tom Fishburne is founder of Marketoon Studios. Follow his work at marketoonist.com or on Twitter @tomfishburne See more of the Marketoonist here

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

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

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest 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 will be 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.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

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