Asda beats both it's sales and profit plans for 2007
Wal-Mart announced today (19th February) that ASDA had exceeded both its sales and profit plan for the financial year ended 31st January 2008.
For the full year ASDA’s comp sales (like-for-like), excluding the positive impact from fuel, were up in the ‘mid single digits’, with total sales increasing in the ‘high single digits’.
Despite operating in a tough retail environment, ASDA also reported that a number of its stores in the UK had achieved some of the highest sales volumes across the Wal-Mart global business.
It also confirmed that it had started 2008 with “mid single digit” comp (like-for-like) growth.
On a conference call to analysts this morning, Mike Duke, Wal-Mart vice chairman, said: "During the year, ASDA was a winner in the UK, being the fastest growing of the big four retailers. In fact, ASDA achieved above-market average growth every single month this year.
“ASDA has now added almost two million customers and 50 basis points of market share since the start of 2006.”
ASDA’s upbeat full year trading figures come on the back of its ‘best ever’ Christmas. ASDA President and CEO, Andy Bond added: "2007 was a vintage year for ASDA. By exceeding all of our targets for the year we were able to share a £21m bonus pot with more than 127,000 store and depot colleagues.
“Although 2008 will be a tougher year for consumers, with increasing energy costs and inflationary pressures on core items, we, along with other retailers, have a responsibility to keep a lid on inflation.
“We will continue to be the undisputed price leader in the UK, aggressively rolling back prices by focusing on reducing our costs. We will also be challenging our suppliers to do the same. Together we must ensure we make it as easy as possible for hard pressed shoppers to make ends meet.”
ASDA has started the year with a comprehensive value-led marketing campaign, with its price leadership position endorsed by independent web-based price checker www.mysupermarket.co.uk, and industry trade magazine The Grocer.
The TV and press ads highlight just how many products ASDA sells that are cheaper than each of its rivals.