Asda battles challenging marketplace to record a sales growth

Case study: Roger Burnley ASDA, which has 17 stores in Northern Ireland, notched up sales growth in the second quarter, despite a challenging retail market and tough competition from last year’s bumper summer.

In the three months to June 30, total sales were up 1.3%, while comparable sales rose 0.5%, excluding petrol.

The period benefited from a later Easter, but was up against strong results last year when the World Cup and summer heatwave boosted performance.

Margins at the supermarket declined in part due to markdowns and investment in lower prices, as well as softer sales of more profitable non-food items.

Chief executive and president Roger Burnley said: “If ever a case study on the impact the mood of the nation has on UK spending habits were needed, this quarter has provided it.

“Consumer confidence levels are at an almost six-year low — due in no small part to the ongoing uncertainty around Brexit and amplified by the impact of weather and tracking against national sporting events in the same period last year.

“As a result our non-food business has been challenged during the period, however, we’re satisfied that our food business has continued to perform well and our online growth continues to outpace the market.”

The results come the day after a group of Asda workers staged a protest in Leeds over the retailer’s new contracts.

The GMB union said that workers face being dismissed in early November if they do not sign the contracts.

It said under the new contracts, workers will not be paid for breaks and will have to work on bank holidays and weekends.