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Asda saw like-for-like sales increase 9.6% to £5.4bn in the second quarter, a 1.8% increase on the previous quarter as the retailer continues to “focus on supporting families during the cost-of-living crisis”.
The company has attributed its performance to its continued investment in low prices and improved quality, which has driven a 14.7% increase in own-brand sales during the quarter compared to a year earlier.
Asda’s value range that was launched last year to help families shop on the tightest budgets, Just Essentials, is said to be firmly established as the number one value range in the market at a 20.2% market share.
Sales of Just Essentials items were also up 87% year-on-year during the quarter, as more than 22 million customers purchased products from this range since its launch in May 2022.
Meanwhile, the retailer’s clothing and GM business outperformed the wider market during Q2, with like-for-like sales growth of 2.8% and 6.3% respectively compared with the same period in 2022.
Mohsin Issa, co-owner of Asda, said: “In addition to investing in value on the shelf, we’re also the only major retailer to give money back to customers every time they shop through our Asda Rewards loyalty app. More than 5 million customers regularly use the app and have earned over £200m since launch to spend in store or online.
“We have also extended our hugely popular kids’ eat for £1 cafes offer until the end of the year. I am incredibly proud that we have been able to serve over two million meals to kids since we launched the initiative last June, investing £1.3m to date to keep the prices pegged at £1.”
Michael Gleeson, CFO of Asda, said: “The growth in like-for-like sales across the quarter reflects the strength of our customer proposition. Our focus on providing great quality and affordable food, stylish clothing and homewares from George, and the ability to shop when and how they like, is clearly resonating with our customers.
“Whilst we continue to see inflation headwinds in our cost base, wherever we are seeing reductions in commodity prices – such as wheat and milk – we are doing the right thing to pass those savings to our customers wherever we can, particularly in our own brand ranges.”
He added: “The integration of 119 stores acquired from Co-Op is now underway and the completion of our acquisition of the EG UK&I estate is on track to complete in Q4– allowing us to bring Asda’s value in fuel and groceries to even more communities.”
