Turning around Asda will take time, parent company Walmart said today, as it reported a 5.8% fall in like-for-like sales in its UK business. But it stressed it was making progress and remained confident in the Asda leadership team, who it said were addressing the situation as a matter of urgency.
Net sales at Asda fell by 3.8% in the third quarter, with like-for-likes down 5.8%, Walmart said as it reported its Q3 results.
“The key priority remains driving an improved customer experience and building sales momentum by simplifying the offer, improving product availability and making strategic investments in service and price,” said Walmart CFO Brett Biggs. “We are moving with pace as we address our customer value proposition in the market.”
New Asda CEO Sean Clarke, who took up the role in July, added: “Putting customers first and foremost is at the heart of our business. We have lowered thousands of prices, improved hundreds of own brand products and invested in more hours for colleagues on the shop floor - so it’s encouraging to see more customers shopping with us in stores and online.
“We are proud to offer customers some of the best food, drinks, clothing and home wares this Christmas to make their festive season even better.”
Operating profits at Walmart International, which inlcudes Asda, as well as businesses in Canada, Brazil Mexico and China, climbed 1.2% in the period to $1.4bn. However, the growth was driven by Mexican business Walmex, with profits at Asda in decline.
CEO and president Doug McMillon said: “We’re making some progress but our turnaround [in the UK] will take time. We’re confident in our leadership team there and want to assure you we continue to address this market with urgency.”
Overall third-quarter revenue for Walmart came in at $118.2bn, up 0.7% year on year, but operating profit fell 10.4% as the company made investments in people and technology and was hit by currency fluctuations.
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