Asda's Performance Indicates Challenges Facing New Owners, Say Analysts
Asda's quarterly and Christmas performance shows that new owners Mohsin and Zuber Issa, along with private equity group TDR Capital, have their work cut out for them in terms of determine the retailer's long-term strategy.
The UK retailer reported a 5.1% rise in same-store sales over the three months to December 31, which while an improvement on third-quarter growth of 2.7%, is still behind many of its competitors.
While there are some mitigating circumstances, such as Asda's decision to compassionately close stores on 26 December, the results are still "well below par," according to Thomas Brereton, senior retail analyst at GlobalData.
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