Asda Delivers Strong First Quarter Sales Growth

Asda has posted an 8.4 per cent rise in like-for-like sales, excluding fuel, for the first quarter of 2009, exceeding analysts’ expectations.
The Wal-Mart owned retailer reported its 12th successive quarterly growth figures and said its profits had risen, although it did not disclose them.
Asda said it had gained considerable custom from all its rivals during the quarter thanks largely to improved quality products and its reputation as Britain’s lowest-priced supermarket .
Sales were boosted by attractive offers under the ‘ Saving You Money Every Day’ campaign, with deals such as three packs of fresh meat for £1. Food sales were also driven by a return to ” cooking from scratch” as hard-pressed consumers looked to save cash in the recession.
In response to the growing trend and consumers’ desire to make cheap family meals, the supermarket said it will launch a range of recipe ideas aimed at feeding a family of four for £4 later this month.
Judith McKenna, Asda’s chief financial officer, said: “These are difficult times for many of our customers, so delivering great value has never been more important.”
“Customers continue to tell us what’s important to them, and we have hit the sweet spot by finding the right balance between lowering prices, improving quality and reducing our costs. As a result we are winning even more customers and we’re gaining them from all of our competitors”.
Mike Duke, President and CEO of Wal-Mart, added: “Asda had a standout quarter, leading on price and gaining market share. I can’t tell you how proud I am of our Asda colleagues.”
Asda currently holds a 17 per cent share of the UK grocery market, second to Britain’s largest retailer Tesco with 31 per cent of the market.