This week (19 May), Asda reported its worst quarterly sales fall in more than five years, as it struggles to keep pace in the UK's supermarket price war.
The results showed a 3.9-per-cent fall in like-for-like sales for the 15 weeks to 19 April, with this latest decline coming after a 2.6-per-cent decline in Asda's fourth quarter, and was its third quarterly fall in a row.
President and CEO of Asda Andy Clarke said, "While there were signs of real and sustainable economic recovery, 2015 was proving to be the most challenging year yet for traditional supermarkets."
He continued, "This last quarter has been unprecedented. We have seen deflation in the market and exponential shifts in the industry. Although I still believe that 18 months ago we did a great job of predicting changes, we could not have foreseen what’s happened to others and the moves they have had to make in order to restore their business, creating an impact on us in the short term."
Chief financial officer Alex Russo and Clarke then highlighted the successes and steps taken in the last quarter to deliver Asda’s five-year strategy, which includes increased convenience for customers.
The retailer called on new research into how the economic downturn has had a long-lasting impact on the spending and saving habits of consumers. This research showed that 83 per cent of the consumers surveyed are now saving any discretionary income, rather than spending it.
Also, despite the latest Asda Income Tracker showing that the annual family is £16 better off per week than the same time last year, 43 per cent said that they feel like they have less money now than before the 2008 recession. A third of those who do feel like they have more money in their pockets are choosing to spend it on activities with the family.
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