Asda hails impact of price investments despite slide in sales

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Asda has suffered a slide in sales during its second quarter but insisted its investments in price are driving positive momentum heading towards the crucial festive period

Asda fascia

The supermarket giant said like-for-like sales excluding fuel fell 1.9% in the three months to June 30. That represented a marked improvement in performance from its first quarter when like-for-likes tumbled 9.2%.

Asda’s total sales declined 2% to £4.9bn.

The grocer said it delivered positive like-for-like sales during the latter part of the second quarter and that “this growth trajectory has continued” into its third quarter to date.

It attributed the sales momentum to “investment in price and quality in core categories” such as fresh produce, poultry, meat and fish.

Asda launched its Just Essentials entry-level range in May, rolling out 220 value products across its store estate and online.

It said the new lines had “proved very popular with value-conscious customers.” Kantar data unveiled earlier this month suggested Just Essentials products were already present in a third of all shopping baskets at Asda.

Asda also expanded its Dropped & Locked price campaign to more than 250 products during the quarter. Prices will remain unchanged until the end of 2022 under the initiative.

The grocer said the move was designed “to give customers greater control over their shopping bills” during the cost-of-living crisis.

Earlier this month, the retailer rolled out its Asda Rewards loyalty app to all its stores across the UK and online.

The app gives customers cash back, rather than points, which they can save in cash pots. More than 2 million customers have already downloaded the app, Asda said, accumulating £7m in their cash pots.

Asda co-owner Mohsin Issa said: “Every week, millions of customers visit our stores or shop with us online and we know many of them are struggling with rising living costs that show no sign of easing.

“We are determined to do all we can to support these customers during these tough times by keeping their grocery bills in check while delivering added value through initiatives such as Dropped & Locked and the Kids Eat for £1 offer in Asda cafes.”