Asda launches premium non-food brand
Asda is launching a premium homeware brand to extend its non-food range and compete with high-street quality.
The “Elegant Living” range includes bedding, bath, cookery and dining products and has been jointly sourced with parent group Wal-Mart. Asda says the premium brand allows it to “match the quality and style found on the high street, while offering customers prices up to 30 per cent lower”.
The news comes as Asda announces better than expected full-year results.
Asda claims that its Price Guarantee campaign has helped boost sales and returned the supermarket to a position where it outperforms the market.
It says like for like sales increased by 1.6% in the fourth quarter of the year.
Asda relaunched its controversial Price Guarantee in January, increasing its price promise to 10%. The supermarket says that the number of customers using the online price checker has “dramatically increased” and 800,000 customers have used it.
However, this only represents 4.4% of Asda’s 18 million weekly shoppers.
Nearly 170,000 customers have downloaded the iPhone app.
The supermarket also claims its premium Extra Special range become the fastest growing premium brand in the market over the final quarter of the year.
Since its relaunch in September, Asda’s mid-range brand Chosen By You, which represents 80% of its own label food sales, has gone from “strength-to-strength”.
Sales of Chosen By You bakery products increased 6%, cakes increased 20%, ready meals are up by nearly 11% and pies up 8%.
Andy Clarke, Asda president and CEO said: “I’m pleased with the progress we’ve made in the last six months. We have successfully extended our price gap to ten per cent, significantly improved the quality of our food across the entire store, and given our customers even better service.
