Asda revenues surge to £5.3bn in Q1

Asda has reported a 6.6% increase in total revenues (excluding fuel) to £5.3bn and 1.4% growth in like-for-like sales for the first quarter ended 31 March.

The supermarket’s continued growth in total revenues, like-for-like sales and margin improvement in food and non-food includes a particularly strong contribution from George at Asda, which “outperformed” the fashion and homewares markets during the quarter.

At George it saw its total clothing revenues jump 3% to £293m in the first quarter and by 3% on a like-for-like basis, as customers responded positively to its investment in price, style and quality credentials.

Top performing categories included schoolwear, where the durability and outstanding value of George’s market-leading range helped to drive an 11% increase in sales in Q1, and homewares, where sales rose 11.7% having been boosted by the launch of the brand’s new Stacey Solomon Spring / Summer collection.

Online grocery sales also increased 18%, driven by a 5.6% increase in the number of average weekly orders in Q1.

The retailer continued to invest in enhancing the “value and quality” of its food offering resulting in a 1.3% increase in like-for-like grocery sales during the quarter.

In January, it became the first supermarket to price match Aldi and Lidl, reducing prices by an average of 17% on more than 280 household staples, including milk, bread, cheese, tea, and fresh fruit and vegetables.

Additionally, Asda has continued to invest in its long-term future during the quarter, including completing the conversion of 470 convenience sites acquired from the Co-op and EG UK to Asda Express, increasing its total store estate to over 1,200 sites – the largest in Asda’s 59-year history.

The retailer remains on track to reach 500 Express convenience stores by the end of this year, as new standalone sites open throughout the UK to bring Asda’s heritage in value to many more customers. New locations in the pipeline include Manchester, Liverpool and Cardiff city centres and four sites in London.

Mohsin Issa, Asda’s co-owner, said: “Asda made good progress against its strategy in the quarter, laying the foundations for long-term success – including completing the conversion of our newly acquired sites to Asda Express, as part of our strategic expansion into the growth markets of convenience and food-to-go.

“We did this while continuing to deliver great range, value and convenience, including investing in lower prices and the quality of our food and non-food at a time when the household budgets of our customers remain under pressure.”