Asda 'Slow To Adapt' To Lower Demand For Non-Food Items, Says Analyst
Asda has been 'slow to adapt' to declining demand for non-food products in its retail outlets, which is weighing on its performance, a leading retail analyst has said.
Thomas Brereton of GlobalData was commenting following a quarter in which the Walmart-owned grocer posted a 1.3% decline in like-for-like sales, citing "challenging market conditions – particularly in clothing".
As Brereton wrote in a briefing note, "For Asda, the problem remains that it needs a faster overhaul of its non-food offer. Its respectable food performance (which picked up numerous accolades over the quarter) will be bolstered in 2020 by recent partnership activity with pastry virtuoso Greggs (a five-store concession trial) and the gradual introduction of the new 1-hour Express Click & Collect.
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