Asda sales rise as Christmas spending is brought forward

The grocer said like-for-like sales were up 2.7% during the three months to September 30, while combined online sales from Asda.com and George.com leapt 72% year on year. 

Asda hailed “strong performance in core grocery, back-to-school clothing and online shopping” for the quarter, noting the period coincided with much of the hospitality sector being reopened in the UK and the end of the first national lockdown. 

The supermarket chain predicted online sales growth would continue in the fourth quarter and said it had increased the capacity of its grocery home shopping service to 765,000 weekly slots in response.

Asda also noted it had seen Christmas spending being brought forward by customers with a surge in “lockdown-proof” festive products. Third-quarter sales of Christmas trees increased by 83%, sales of festive lights rose 57%, Christmas puddings 71% and mince pies 44%.

The retailer said it expected customers to celebrate Christmas this year “in a different way” and said that sales of frozen turkey crowns, “which typically serve 3-4 people”, have increased 230% year on year. 

Chief executive Roger Burnley said: “After a rollercoaster year, it’s clear our customers are already planning for a very different Christmas. We have already seen a marked shift in buying patterns with customers stocking up their freezers and cupboards with festive essentials earlier than ever before, which suggests they are getting used to expecting the unexpected but preparing to enjoy themselves as much as possible. 

“Whatever happens during the next few weeks, we are totally focused on delivering a great Christmas for our customers during these uncertain times.”  

Asda also noted the steps it had taken to ensure staff and customer safety since England and other parts of the UK entered a second lockdown earlier this month.

It has extended Covid Safety Marshal hours, added over 700 new sanitisation stations in stores, and paid vulnerable and shielding staff contracted hours for the duration of the second lockdown if they cannot work. 

Burnley said: “Throughout the pandemic, our priority has been to do everything we can to protect our customers, colleagues and our communities and we will continue to do so for as long as Covid is part of our lives.”

Parent company Walmart enjoyed a bumper quarter, with overall operating profits soaring 22.5% to $5.8bn (£4.4bn). 

Total sales were up 5.2% to $134.7bn (£101.6bn), while comparative sales in the US were up 6.4%. Online sales in the US soared 79% with Walmart noting “strong results across all channels”.