Asda notches up second quarter sales growth
Asda has notched up another rise in quarterly sales, but the speed of growth was pegged back by the timing of Easter.
The Walmart-owned supermarket, which is readying itself for a merger with rival Sainsbury’s, posted a 0.4% increase in like-for-like sales in the three months to the end of June.
The figures represent the fifth consecutive quarter of positive sales growth, but it marks a slowdown from the 3.4% recorded in the first three months of the year.
Asda put this down to the early timing of Easter, which helped give it a boost in the first quarter but meant it did not benefit in the second.
Removing the impact of Easter, like-for-like sales in the quarter grew by 2.6% the firm said.
“Our second quarter performance shows continued momentum for 2018 and this is the first quarter we have outperformed the market since 2014,” said CEO Roger Burnley.
“We remain focused on delivering our strategic priorities and investing in the areas that matter most to our customers - innovation in our own brand, lowering prices and in continuously improving our shopping experience both in store and online.”
Asda said targeted price cuts helped improve its performance, adding that better food sales volumes and “strengthening performance in non-food categories” also gave it a boost.
Net sales increased 2.4% in the period while the supermarket also saw its gross profit rate increase compared to last year, supported by better margins in non-food.
Walmart boss Doug McMillon added: “In the UK, comp sales were positive for the fifth consecutive quarter. We’re focused on improving the experience in our stores and providing great value for customers through lower prices, especially within our private label offerings.”