Asda: like-for-like sales fall 1.9% in Q2
30 August 2022Asda has reported its second quarter like-for-like sales, excluding fuel, fell 1.9%. It noted the comparative period in 2021 was impacted by on-going Covid restrictions.
Asda generated revenue, excluding fuel, of GB£1.9 bn during the quarter. However, the retailer said its on-going investment in prices and quality had driven ‘positive like-for-like sales growth at the end of Q2 and into Q3’.
Sequential improvement on Q1…
Asda’s Q2 performance was a ‘significant improvement’ on its Q1 results, when like-for-like sales fell by 9.2%. The retailer also said it had seen continued improvements during the second quarter with ‘positive like-for-like sales towards the end of the quarter and this growth trajectory [continuing] into Q3’.
At the end of the second quarter the retailer said it would increase its focus on providing sharper prices and driving loyalty, which it has been doing since. Asda noted its improving performance in Q2 had been ‘driven by its continued investment in price and quality in core categories, including produce, meat, fish, and poultry’.
…Supported by on-going initiatives
In Q2 Asda launched, in May, and expanded its range of ‘Just Essentials’ private labels. The range now includes 220 SKUs, including fruit, vegetables, fresh meat, fish, and poultry products. It has also launched the Dropped & Locked campaign, which covers more than 250 everyday needs and ensures their price will not change for the rest of 2022. The retailer also launched its Home Bargains price match on over 100 products in the key household, personal care and petfood categories. Most recently Asda significantly expanded its ‘Rewards’ programme, following successful regional trials.
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