Asda to bolster food quality as sales slow

Asda has outlined further investment in the quality of its own brand ranges as it reports a slow down in sales growth in the second quarter.


The supermarket is extending its partnership with upmarket cookery school Leiths with the launch of a new Extra Special ready meals range in September.

The launch is part of Asda’s ongoing efforts to improve the quality and perception of its food after previously admitting it was not good enough. It has invested £113m in improvements over the past two years including the launch of its Chosen by You range and its partnership with Leiths cookery school to improve its Extra Special range, alongside keeping prices low. LINKS

The supermarket posted a 0.7 per cent rise in like for like sales for the three months to 30 June, sloer than the 2.2 per cent sales uplift registered in the first quarter.

The strongest performances were in grocery, apparel and electronics while the online business reported a 22.1 per cent increase in sales.

Asda claims that its Price Guarantee “continues to build a loyal following” and attracted more than 600,000 online checks per week on average.

Andy Clarke, Asda CEO and president, says: “We have continued to increase our sales and grow ahead of the market through a combination of lowering more prices and driving even harder on product quality. Our ‘real value’ strategy is paying dividends, and enabling us to grow the business in a sustainable way.

“Asda has and always will be the price leader, but we know that a tighter budget does not limit mum’s desire to give her family the absolute best. We’re redefining what real value means and showing that price and quality aren’t mutually exclusive.”

The supermarket says its UK profit increased year on year but did to provide figures.

Parent group Walmart reported a 2.2 per cent rise in like for like sales and a 4.5 per cent rise in total sales to $114.3bn.

Operating profit at the global group increased 4.9 per cent to $6.7bn during the period.

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