Asda reports like-for-like sales up 6.9 per cent

Despite tough trading, Asda said it grew its total sales in the “high single digits”, excluding petrol, for the quarter ending 30 September.
Asda remains focused on driving low cost and claims its profits grew ahead of target as a result of efficient cost control, despite rising energy costs. The Wal-Mart-owned grocer has invested£30 million in improving product quality and claims blind tastes show its own label products outperformed comparable products from premium-led retailers. It said this is one of the initiatives that led to strong food sales.
Asda chief financial officer Judith McKenna said: “This is another strong set of numbers. We have continued to grow volume and gain market share each quarter this year by focusing on giving our customers great quality and outstanding value at a time when they need them most. Our strategy of being the lowest cost to operate supermarket is the right one and is helping us drive down prices.”
In general merchandise, Asda showed strongest growth in baby, music, video and games. It also had its best ever Halloween performance. In addition, its Asda Mobile network grew with the launch of the UK’s lowest pay-as-you-go mobile tariff.
The grocer’s clothing brand George has simplified its ranges, improved product quality and launched iconic items such as the£12 little black party dress.
Asda’s online operation covers more than 90 per cent of the UK population and for Christmas it has increased the number of delivery slots by 40 per cent from last year. It also launched Asda Direct in the autumn.
McKenna said: “We are absolutely committed to making life easier for hard-pressed shoppers. We will continue to offer outstanding value for money across our entire range of food, general merchandise and clothing. As a result I am confident our stores are well set up to enable customers to have the best possible Christmas.”