Asda has posted an increase in revenues during the first quarter of parent company Walmart’s financial year, driven by increased grocery sales during the coronavirus crisis.
The supermarket giant registered a 3.5% uplift in like-for-like sales during the three months to March 31, with net sales up 2.7%.
Although the number of transactions fell 3.4%, Asda’s average basket value jumped 6.9% year on year as shoppers stocked up during lockdown.
Walmart said “higher growth in food and consumables” during the period was “partially offset” by reduced demand for Asda’s George clothing proposition.
Walmart did not give precise figures on profitability, but said Asda’s bottom line contracted in the first quarter, “primarily as a result of a change in mix towards lower-margin categories in response to Covid-19”.
The US retail goliath’s international division, which comprises operations in 26 markets including China, Mexico and Brazil, recorded a 3.4% uptick in sales to $29.8bn.
In its domestic US market, Walmart’s like for likes jumped 10%, while ecommerce sales surged 74% as consumers shopped from home during the lockdown. The group’s total revenue grew 8.6% to $134.6bn during the 13-week period.
Asda chief executive Roger Burnley said: “It has become increasingly clear that Covid-19 is set to be part of our lives for months to come and we know that customers have moved on from an initial worry about the virus to longer-term concerns about the implications of lockdown on their family, wellbeing and finances. And, as more people return to work, they are juggling the demands of cooking more and having less time to shop for groceries.
“While safety is still a major focus for customers, three-quarters tell us they are also increasingly
“However long Covid-19 is with us, we will continue to offer great value to customers, as well as investing in doing the right things to protect our customers, our colleagues and our communities – and fulfil our vital role in feeding the nation.”
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