Leiths School of Food and wine in West London was the setting for Asda to announce a 0.7% boost in Q2 like for like sales today.
Apt surroundings, as the key focus of the day was on Asda’s “journey” towards offering better quality food after teaming up with Leiths. Not a “brand endorsement,” we were reminded, “but a partnership”.
And Leiths were equally enthusiastic about what the partnership had produced, raving about the range before offering assorted hacks slow cooked pork shanks, spiced red cabbage and mustard mash to enjoy while they digested that modest increase in like for like sales.
But as far as Asda were concerned, in this climate any positive growth is to be welcomed. And when you combine that 0.7% with Q1 it makes for a healthier looking HY1 boost of 1.5%. Market share is up 0.5% to 17.3%. And with the 147 Netto conversions set to weigh in properly by Q3, its market share should increase further.
And Clarke looked happy to wait it out, repeatedly stating that Asda’s strategy was one of sustainability. Along with FD Rob McWilliam, Clarke dismissed Tesco’s fondness for short term promotions as “gimmicks to hide a weak price point” and suggested its last petrol promo, which asked customers to buy a number of different products in order to save cash at the pump, must have felt like “playing basket bingo.”
Simple EDLP is the way forward, trumpeted a confident Clarke. “Delivering a money-saving promise week in, week out.” EDLP is not an especially new message from Asda, but it’s getting louder.”
In summary, Clarke said he was “pleased and proud” of Asda’s performance in a “tough market”. Then he relaxed and enjoyed some Asda Extra Special pork shanks cooked sous vide style. And there was nothing tough about them.
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