However, operating income was less than last year, although it was still “slightly ahead of plan”. Like-for-like sales growth was in “the low single digits” and total turnover was up in “mid-single digits”.
Asda warned that rising mortgage rates and fragile consumer confidence were beginning to affect shopper spending, but Asda chief executive Andy Bond said he is confident of Asda’s prospects.
He said: “With interest rate rises and the increased cost of Christmas, customers are feeling the pinch, but retailers should stop blaming this, wet weather or consumer confidence for their sales performance – it’s a load of humbug.
“At Asda, our job is to make products more affordable, not to moan about the state of the economy. For the ninth month straight we have grown our share of the market and beat our sales and profit plan. This clearly demonstrates our approach to always lowering prices if it continues to pay off.”
Asda will launch its Christmas advertising campaign, featuring Julie Walters, tomorrow.
Asda is also testing a Direct business, which will allow customers to buy an extended product assortment online, by phone or at in-store kiosks.
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