18th May 09
Strong first quarter reported by ASDA
by Natasha Redman
www.asda.co.uk
For the first quarter of 2009, ASDA has announced a growth in sales of 8.4 per cent as compared with the same period last year. The figures exclude petrol sales, the impact of the timing of Easter and the impact of 2008 being a leap year.
The market-leading results compare with an increase of 7.2 per cent for the fourth quarter of last year and a 6.9 per cent rise during the third quarter.
Food sales showed the strongest growth, most likely driven by consumers returning to “cooking from scratch” in order to save money in the current economic climate. ASDA would not reveal how much of the improvement related to inflation, but did say that it believed food prices peaked in 2008, which would affect top line sales growth.
The chain, owned by Wal-Mart, operates 370 stores in the UK. It noted that both sales and profit targets for the last quarter were beat, citing cost-cutting efforts for its improved profitability. The retailer implemented an “operate for less” aimed at cost reduction. ASDA said that its first-quarter gross margin was “consistent” with the same quarter last year.
In the first quarter, the second-largest supermarket chain in Britain saw its market share increase by 30 basis points, and claimed to have gained customers from all of its competitors.
ASDA said it is well on the way to winning the lowest-priced supermarket award from The Grocer magazine for the 12th consecutive year - by keeping its promise to customers of “Saving You Money Every Day”,
For more information on this article please visit www.kamcity.com.
www.asda.co.uk
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