Asda, the UK's second largest supermarket chain, saw comparable store sales fall 0.1% in the 13 weeks to January 3, leaving overall full-year sales 0.5% higher. This compares to a rise of 0.3% in the previous quarter.
The Wa-Mart subsidiary, which trails market leader Tesco by annual sales, is currently in competition with J Sainsbury to remain Britain's no 2 ranked grover.
Andy Clarke, president and chief executive of Asda, said: "It will come as no surprise that 2013 was a tough year for UK retailers and there's little doubt that the UK retail market is undergoing significant and permanent structural change.
"Though the economy is showing signs of recovery, it is still susceptible to shocks and the benefit is not yet being felt right across the country."
In related news, Walmart itself reported a 22% drop in quarterly profit and given a weaker-than-expected earnings forecast for the coming year.
Net income for the three months to 31 January fell to $4.4 billion (£2.6bn) from $5.6 billion a year earlier.
Wal-Mart said tough winter weather, cuts to government benefits and higher taxes contributed to the fall.
© 2014 - European Supermarket Magazine by Enda Dowling
