Asda posts positive sales growth for third quarter
Like for like sales, excluding fuel and VAT, up 1.3 per cent in Q3 (to 30th September 2010)
- Profits grow ahead of sales
- Successful launch of Chosen By You range
- Extra Special ranges revamped for Christmas
- Asda.com hits record sales and continues to grow at 30 per cent
- 7,500 new jobs announced for 2011
Asda announced today (Tuesday 16th November 2010) that like for like sales, without fuel, were up 1.3 per cent in the third quarter (up to 30th September 2010). Profits for the same period also grew ahead of sales, beating internal targets.
During the quarter Asda relaunched its core range called Chosen By You, upweighted activity around the Asda Price Guarantee leading to a four-fold increase in weekly comparisons, and experienced record sales via Asda.com which is continuing to grow at 30 per cent. It also significantly lowered the cost of core commodities like milk.
Andy Clarke, Asda CEO and President said: "After a particularly tough start to the year we’re pleased with the progress we’re making. The new initiatives we have put in place – Asda Price Guarantee, Chosen By You launch, Extra Special revamp, plus George firing on all cylinders – are all increasing the number of customers coming through our doors.
“As we approach Christmas we are in good shape and are clearly focused on delivering for our customers in three key ways – keeping our prices low, enhancing our quality and driving product innovation into our stores through the introduction of new ranges."
Asda has introduced dozens of new products into its Extra Special range this year in time for Christmas. During October it also gave customers the opportunity to try Extra Special products for the first time by offering them 25 per cent off for three weeks.
Andy Clarke said: “I’m pleased to say the Extra Special event was a huge success, and drove incremental sales. Our premium range is in good shape and customers are responding well to the new products we’ve introduced this year.”
Dozens of new products are hitting the shelves in time for Christmas including sherry trifle gateaux, trout and horseradish terrine starters and mini steak-and-ale pies. Asda is also selling Christmas puddings aged for six months for £10.98.
The latest Asda Income Tracker revealed the typical family’s disposable income was £4 lower in September 2010 than September 2009. As a result Asda customers have also started stocking up on toys and big tins of chocolates even earlier this year in a bid to spread the cost of the festive period.
“We’re acutely aware of our responsibility to do everything we can to keep lowering costs, and keep the cost of living down for all our customers,” added Andy Clarke.
Doug McMillon, President and CEO of Walmart International said: “We are encouraged by the recent sales momentum in the UK where we are well positioned for the holiday season. At a time where economists are forecasting very tough economic conditions, Asda remains committed to saving customers money every day.”
During the third quarter (up to 30th September) Asda opened two new stores in Hazel Grove and Gorseinon. Since then it has opened a further five in Workington, Twickenham, Kettering, Langley Mill, and Hastings. Its final new store in 2010 opens in Newquay next Monday 22nd November.
Earlier today Asda announced it was set to create 7,500 new jobs in 2011, building on the 30,000 jobs it has created in the last five years. It also has nearly 3,000 vacancies available on its job website.