Asda Posts Best Quarterly Performance In Three Years
UK retailer Asda has reported that like-for-like sales were up by 1.8% in the second quarter of the year, following eleven consecutive quarters of sales declines.
The company also recorded a 3.9% increase in revenue year-on-year, making this Asda's best quarterly performance in over three years.
Asda's parent company, US retail giant Walmart, also posted an increase in revenue in its results, but a lukewarm earnings forecast for the third quarter has caused the retailer's shares to fall.
Ray Gaul, vice president of Kantar Retail, says that Asda's "much-improved" results will bring "a temporary sigh of relief to new boss Sean Clarke".
Sean Clarke replaced Andy Clarke as chief executive last year, and has implemented a new strategy, which involves cutting prices and improving the quality of own brand items.
In the past year, the retailer has reintroduced its Asda Farm Stores private label range and upgraded its clothing and homewares lines, however, analysts are saying that the next quarter will be an important one for Asda.
"The success of this Christmas season for Asda will rely heavily on the retailer’s online presence," added Gaul. "With Britain’s growing love for Black Friday and Cyber Week offers, Asda will soon face a true test on whether it can improve on the basics and leap into the future of shopping at the same time."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.