Asda has admitted to a “disappointing” first quarter after suffering a slight dip in like-for-like sales over the past three months.
Like-for-likes fell by 0.3% in the period to 31 March, with total sales up by what Asda called “low single digits”. Profits “grew ahead of sales, beating internal targets”.
The results come after Andy Clarke was last week confirmed as the supermarket’s new chef executive, with Andy Bond stepping back to chair Asda’s executive committee.
“By our own high standards, our first quarter sales were disappointing,” said Bond. “The market has slowed down significantly since the turn of the year and I expect conditions to remain tough for some time.”
He said the supermarket would concentrate on its “four-pronged strategy” targeting price, quality, service and range “to build sales and broaden our appeal”.
Despite the sluggish performance, Bond insisted that Asda’s “price position and price perception had never been stronger” and promised that “exciting developments” were due in the second half of 2010.
Walmart International president Doug McMillon said: “Asda has recently made good progress towards its strategic goals. I am confident that our strong leadership team, led by Andy Clarke, will continue this progress and deliver positive sales momentum for the remainder of the year.”
Clarke added: “Listening to customers, it’s clearer than ever that the second half of this year will be challenging for them. It is our responsibility to deliver the plan we’ve laid out, and by doing so help lower the cost of living for our customers.”
Read more
Clarke’s promotion leaves Asda with big shoes to fill (15 May 2010)
The penny drops: an interview with Asda's Rick Bendel (8 May 2010)
Morrisons’ momentum stalls with slow first quarter (6 May 2010)
It’s the end of an era at Asda - but the beginning of what? (17 April 2010)
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