Asda posts its worst ever quarterly sales performance

Asda sales in the three months to the end of June fell 7.5 per cent, with the Walmart-owned supermarket having already seen sales fall 5.7 per cent in the three months prior.
The drop in like-for-like sales does not include new Asda stores which opened during those three months, but it is the eighth quarter in a row now of falling sales, and the largest quarterly drop ever for the supermarket.
The reason for the decrease has been attributed to the prominence of discount stores such as Aldi and Lidl, who have undercut Asda and the other “Big Four” supermarkets – Tesco, Sainsbury’s and Morrisons – in the price war.
Instead of responding with significant price cuts, Asda will continue with its five-year plan, which sees the supermarket investing £1.5bn into the lowering of prices.
Doug McMillon, chief executive of Walmart, said: “Our strategy to turn things around is focused on improving the retail basics. While our turnaround will take time, I’m confident in the new leadership team there and want to assure you we’re addressing this with urgency.”
Sean Clarke, newly installed boss at Asda, said: “Although Asda is in the midst of a very challenging period, there is no doubt in my mind that the culture that has always been at the heart of our success is still there. We’ve also started one of the biggest journeys of reinvention in our history to further build on our strong offer and I feel positive about the future.”