Asda Reports Growth In Budget Food Sales

Asda has announced sales of its budget lines have risen 20 per cent as shoppers seek bargain deals in the face of rising everyday costs.
The Wal-Mart-owned supermarket chain said the increasing popularity of its Smartprice and Extra Special ranges have helped increase underlying sales growth during the second quarter to 6 per cent, compared with 5 per cent for the first quarter.
As a result the retailer has seen its share of the grocery market grow by 0.2 per cent to 16.9 per cent over the 12 weeks to July 13, according to figures by TNS Worldpanel.
Asda said it is benefiting from a rise in affluent customers seeking cheaper food and drink options in recent months as households look to offset rising fuel, energy and food costs driven by the credit crunch.
Last month the chain reported that it has seen an 11.2 per cent increase in spend by AB households and that sales on green tea, indulgent pizzas and red wine had rocketed at its stores .
The UK’s second largest supermarket chain has been strongly promoting its price credentials by launching a number of price-cut initiatives in recent months, including a three-day 50p campaign last weekend on staple products such as milk and minced beef .
Rival supermarkets have also launched a string of price-cuts since the start of the year, with Tesco recently cutting the prices on 18,000 of its products .

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