Asda Sees Like-For-Like Sales Up 1.1% In Third Quarter
UK retailer Asda has posted a 1.1% increase in like-for-like sales in the third quarter of its financial year, with net sales rising 3.6%.
The results, which were revealed as part of parent Walmart’s quarterly figures, indicate that the retailer has now posted two successive quarters of growth.
‘We continued to see improved results as customers responded to investments in the value proposition,’ Walmart said in a statement. ‘During the quarter, we experienced improved in-store service scores and performance strengthened across our private brand and online grocery offerings.’
While Asda’s profit performance was not revealed as part of the figures, the company did say that ‘gross profit rate declined primarily driven by commodity price headwinds as well as on-going price investments’
Operating expenses during the quarter were leveraged through ‘sales growth and continued cost control’, it added.
In an earnings call, Walmart CEO Doug McMillon said, “Asda delivered positive comp sales again this quarter. The improvements in store experience and price investments are increasing store basket sizes.”
McMillon added that the company was “excited” to have a new CEO take charge from January, Roger Burnley, saying that the group’s current COO and deputy CEO has “a long and distinguished retail career. I’d like to thank [current CEO] Sean Clarke for the tremendous work that he has done over the past year to stabilise the business and position it for growth.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.