Asda’s like-for-like sales in the third quarter slipped as the grocer outlined the measures it was taking to ensure good availability for customers heading into Christmas.
For the third quarter covering July 1 to September 30, 2021, Asda like-for-like sales fell 0.7% to £4.9bn excluding fuel. The grocer said sales were down compared to the same period in 2020 because “sales were boosted by the ongoing social distancing restrictions, which resulted in more meals being consumed at home.”
On a two-year basis, Asda sales were up 2% overall and food sales were up 3.4% compared to the same period in 2019.
The grocer also noted that demand for online delivery “softened slightly” during the period, with sales down by 2.7% on the same period last year as more customers returned to shopping in-store.
However, Asda noted that online sales on a two-year basis were up 80% compared to the same period in 2019.
The retailer’s clothes sales for the period increased 1.2% in the period, while general merchandise sales were down 3.1% compared to the same period in 2019.
Christmas isn’t cancelled
In a bid to reassure customers ahead of Christmas, the retailer laid out the measures it was taking to ensure good availability of food, clothes and general merchandise in the midst of the ongoing supply chain crisis.
Asda has increased the volume of turkeys and pigs in blankets in store compared to last year, as well as building extra stock of festive products in depots such as mince pies, confectionery, Christmas cakes and puddings.
The retailer also said it had chartered its own cargo ship to protect the availability of “key festive products” such as decorations, toys, clothing and gifts.
The supermarket giant said it has hired an extra 15,000 temporary staff to deal with the increased Christmas trade, and has upped its available delivery slots to 1 million a week.
Asda co-owners Mohsin and Zuber Issa said: “We know how much Christmas means to our customers, especially after some missed out on celebrations with friends and family last year. Our colleagues have pulled out all the stops during the last few months to make sure customers can get their favourite festive products at Asda and enjoy the Christmas they deserve – and we’d like to thank them for their continued effort and commitment to serving our customers.
“Looking ahead, our plans to rollout Asda on The Move remain firmly on track and will open up significant growth opportunities in the convenience channel. We are also highly encouraged by the early uptake of our Asda Rewards loyalty programme and look forward to bringing this trial to customers in more stores next year.”
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