The Press and Journal (Aberdeen and Aberdeenshire)
Asda sees its sales rise for sixth consecutive quarter
Retail: High street giant’ s 2% increase buoyed by 100,000 new customers
Sales at Asda increased in the three months to the end of September as more than 100,000 new customers shopped at the supermarket.
Comparable sales were up 2% for the period, marking a sixth consecutive quarter of growth.
And net sales were 3.7% higher as online grocery shopping grew by 13.8%.
Asda president and chief executive Roger Burnley said: “In a challenging third quarter for the market we continued to focus on the areas that we know are important to our customers
“We continue to focus on the areas we know are important to our customers”
and deliver on our strategic priorities.”
The retailer has expanded its own brand range amid a groceries price war which has seen the likes of Aldi and Lidl put pressure on the biggest players.
Asda’s latest figures come as it awaits provisional findings in the current stage of the Competition and Markets Authority investigation into its proposed merger with Sainsbury’s.
Retail experts say the watchdog could force the enlarged company to offload some stores.
A final decision must be made by March 5 2019.
Doug McMillon, chief executive and president of Asda’s current owner, Walmart, said the latest developments in the retailer’s proposed merger with Sainsbury’s were “inline with our expectations”.
Asda is also preparing to consult staff over changes to hours and roles in the new year. Reports emerged last month that up to 2,500 jobs could be cut.
Meanwhile, new figures from the Office for National Statistics (ONS) show UK retail sales growth slowed to a six-month low in October as consumers eased back after a buoyant summer of spending and mild weather delayed winter clothes buying.
Sales fell by 0.5% in September, while year-on-year growth slowed to 2.2% from 3.3% the month earlier – the slowest since April.
Growth slowed to 0.4% over the three months to October, a figure useful for smoothing out monthly volatility.
This is significantly lower than the high of 2.3% seen in the three months to July.
The figures also show a strong 3% decline in sales of household goods following a particularly strong August and September, while year-on-year growth in fuel sales was the weakest since March 2017.
ONS head of retail sales Rhian Murphy said: “Retail sales slowed after a buoyant summer, with the mild autumn hitting winter clothes sales.
“Household goods sales also fell in October following two consecutive months of strong home improvements sales.
“Consumers chose to purchase goods from many stores’ websites as online sales continued to increase.”
Ian Geddes, head of retail at Deloitte, said: “These figures are not surprising and reflect a clear slowdown in consumer momentum since the summer.
“Consumers, concerned about their levels of disposable income and debt, are being cautious about how they spend their money.
“This is creating a highly competitive environment for retailers, who are faced with what looks set to be a very tough final quarter of 2018.”