Asda Sales Boost Driven By Wealthy Bargain-Hunting Shoppers

Asda has reported a significant jump in quarterly sales, further indicating its strength amid the economic downturn.
The UK’s number two supermarket chain said like-for-like sales in the third quarter of the year were up 6.9 per cent, excluding petrol, compared to the 3.9 per cent growth posted yesterday by rivals Tesco and Sainsburys for the same period.
Asda said the sales increase was driven by a combination of increased customer numbers, in particular among wealthy AB shoppers in search of better value, and a higher average ‘basket spend’ per visit as customers revert to stocking up on goods once their salaries are paid.
It added that profits have grown ahead of its internal targets “with good cost control despite rising energy costs “.
Judith McKenna, Asda’s finance director, said that the retailer had been cutting prices to help cash-strapped shoppers deal with falling household budgets.
“We have continued to grow volume and gain market share each quarter this year. We are absolutely committed to making life easier for hard-pressed shoppers,” she said.
She added that sales of wine, fresh meat and products in its “extra special” range were performing well despite the recession .

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