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Asda vows to improve after LFL sales fall in H1
During that period, the retailer saw total revenues (excluding fuel) increase by 2% year-on-year, although like-for-like (LFL) sales decreased by 2.1%.
This is despite a difficult Q2, when year-on-year revenues and LFL sales fell 2.2% and 5.3% respectively.
To address the decline in sales, Asda has laid out “wide-ranging plans to deliver an enhanced and more consistent in-store experience for customers in the remainder of H2”.
This will include enhancing availability across all categories, including 1,000 core grocery lines.
Elsewhere, the supermarket increased online grocery sales (which now account for 18% of its total food revenue) by 1.4% in Q2.
Throughout H1 Asda has been carrying out its £50m store upgrade programme, with refreshes already underway at 130 stores. It has also pledged to invest an additional £30m in staff hours.
Finally, Asda introduced price cuts on more than 120 products worth £70m in May, reducing prices by an average of 11%.
‘Committed to maintaining our value credentials’
Reflecting on the year to date, Asda co-owner Mohsin Issa said: “These results highlight a period of robust online performance.
“As we move forward, we remain committed to maintaining our value credentials, enhancing the product offer, and executing our long-term growth strategy to build an even stronger Asda for our customers and communities.”
Meanwhile, chief financial officer Michael Gleeson added: “We continue to make progress by investing in bringing our quality and value offering to more customers across the UK, with Asda’s food price inflation trending lower than the market.
“We have made great progress over the last few years in transforming Asda into a diversified retail group, much of which is almost complete. However, we also know that there are some areas where we can and need to improve. We have today set out clear and decisive action to deliver a more consistent customer experience – to match the uncompromising value we offer. We remain confident in the underlying strength of the Asda business as we execute our long-term growth strategy.”
In other news, Glebe Farm Foods has claimed that its PureOaty Barista product has the lowest carbon footprint among oat drinks on the UK market.
