Asda suffers further quarterly drops

Ben Parfitt
Asda suffers further quarterly drops

Walmart owned supermarket chain Asda has suffered a second successive year-on-year decline in quarterly sales.

For the three months ending June total sales fell 0.4 per cent. This follows a 0.3 per cent in the preceding quarter. In the period Asda’s grocery sales increased by 1.9 per cent, though compares poorly with rivals such as Morrisons (up 5.9 per cent), Sainsbury’s (5.5 per cent) and Tesco (3.2 per cent).

The results were not helped by an annual four per cent decline at Netto, which Asda acquired in May.

As a result Asda’s market share fell by 0.3 per cent year-on-year to 16.1 per cent.

Results at parent company Walmart saw a 2.8 per cent net sales increase to $103bn and a 4.4 per cent climb in operating income to over $6bn.

“The slow economic recovery will continue to affect our customers, and we expect they will remain cautious about spending,” Walmart CEO and president Mike Duke stated. “Walmart is committed to our mission of saving people money so they can live better.”

Of Asda, Walmart International president and CEO Doug McMillon added: “In the United Kingdom, Asda continues to make good progress towards their strategic goals.

“Asda’s gross margin as a percentage of sales increased in the second quarter on a mix shift towards higher-margin George and general merchandise. Asda’s gross margin as a percentage of sales increased in the second quarter on a mix shift towards higher-margin George and general merchandise.”

Advertisement

Tags: uk , walmart , financials , asda

Follow us on

  • RSS