Asda has reported a fall in like for likes as a later Easter this year contributed to a drop in comparative sales in its first quarter.
Asda’s like for likes slid 1.1% due to the timing of the holiday but rose 0.5% when adjusted for when Easter fell.
It achieved double-digit growth on both Asda.com and George.com and invested in price during the quarter, which helped own-brand product growth outpace the market.
The Walmart-owned business, which was blocked by the Competition and Markets Authority (CMA) from merging with fellow big four grocer Sainsbury’s, had previously racked up seven consecutive quarters of like-for-like growth following a five-year decline.
Following the CMA ruling, Walmart said it is considering an IPO for Asda as it looks to exit the British grocery market. Walmart International boss Judith McKenna told colleagues earlier this week that such a process could take years but it was under serious consideration.
Walmart chief executive and president Doug McMillon said during the results presentation that Walmart was “disappointed that the proposed merger of Asda with Sainsbury’s isn’t happening because it would’ve been good for customers and the businesses”.
Chief financial officer Brett Biggs added: “We’re focused on continuing to execute the strategy to strengthen Asda’s long-term success, including the potential of an IPO at some point in the future. We’ll be thoughtful and measured in our approach.”
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