Sales from stores open for a year or more increased 0.7 per cent in its second fiscal quarter, the three months to 5 July. Sales in the supermarket’s first quarter, however, had grown 1.3 per cent.
President and CEO Andy Clarke says price promotion initiatives such as Price Lock, which fixes prices for “essential items” such as milk and bread have helped drive growth. He also credited what the supermarket calls its “clicks and bricks” strategy, multichannel initiatives such as click and collect, for helping maintain growth.
“We’re pleased with our results in a tough market. We continued to grow our sales while also investing in holding down the price of essentials, increasing access points to Asda’s value and putting money back in customers’ pockets when they need it the most.
“Our focus on opening up more ways for more customers to shop with us, particularly in areas currently underserved by Asda, provides us with real opportunity to grow space and channels to adapt our business to today’s customer. I’m confident this focus will continue to drive growth in a sustainable way,” he says.
Asda might have been expecting faster growth in a period when the hot weather the UK has been enjoying had Britons stocking up on ingredients for BBQs. Last week, the British Retail Consortium reported food sales drove a 2.2 per cent increase in retail sales in July, while the Office for National Statistics today (15 August) said food sales jumped 2.1 per cent year on year in July.