UK retailer Asda has reported a 1.4% increase in like-for-like revenue in the first quarter of its financial year ended 31 March 2024.
Revenue for the quarter, excluding fuel, increased 6.6% to £5.3 billion (€6.2 billion), the company added.
Asda's performance was boosted by the performance of its clothing business, George at Asda, which saw 3% growth in like-for-like revenue.
Elsewhere, online grocery continued to perform well during the quarter, accounting for 18% of food sales, driven by a 5.6% increase in the number of average weekly orders.
Mohsin Issa, co-owner of Asda stated, “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."
Grocery Division
Grocery sales at Asda increased by 1.3% on a like-for-like basis during the quarter as the retailer continued to invest in enhancing the value and quality of its food offering.
In January, it launched the Aldi and Lidl price match campaign, reducing prices by an average of 17% on more than 280 household staples, including milk, bread, cheese, tea, and fresh fruit and vegetables.
Subsequently, Asda expanded the campaign to include more than 400 core products.
After the quarter ended, Asda announced new price cuts on hundreds of products worth £70 million (€81.9 million).
Michael Gleeson, chief financial officer at Asda stated, “During Q1, we continued to help customers manage their household budgets by providing uncompromising value on food and non-food ranges. It was pleasing to see our investment in further enhancing the quality of our food, Aldi and Lidl price match, Asda Rewards, and George at Asda resonate so strongly with customers.
“Since the shareholder group acquired the business in June 2021, they have invested more than £3.5 billion (€4.1 billion) to grow the business organically and via strategic acquisitions and a further £800 million (€936.1 million) to replace legacy Walmart IT infrastructure with new bespoke Asda systems.”
