Asda has come out fighting with its latest set of financial results despite the uncertainty of a management restructure still hanging over the business.
The retailer reported like-for-like sales growth of 0.5 per cent, excluding petrol, for the second quarter of 2014, results which it said backed up its strategy of “redefining value retailing”.
President and CEO Andy Clarke admitted that structural changes in the UK retail market presented tough challenges, but insisted that it had a plan in place to stay ahead of the competition.
“The last quarter has seen unprecedented change within the food retail sector, and while I do not underestimate the challenge currently presenting retailers, I am proud that our business identified and put plans in place to respond to these changes early,” said Clarke. “We have a clear five-year strategy based on Everyday Low Prices (EDLP) and we continue to implement that strategy with agility and pace.”
Clarke said Asda’s £1 billion investment in EDLP was helping it win customers who wanted clear and simply prices. The supermarket also extended its Price Lock promise to 160 lines during the quarter.
Referring to the company’s management changes and staff training, Clarke said the process was “one of the most difficult decisions of my career” but said that additional 600 roles were also added in the new plans.
In terms of digital retailing, Asda has increased its market share to 18.4 per cent, with growth driven by Click & Collect, which now accounts for 10 per cent of all online orders.
Clarke concluded: “I am pleased with our performance in the quarter and our business has shown that it is well positioned to meet the demands of a challenging market. However, I’ve been in this business for too long to measure success by quarters and we remain on a long-term journey.
'Innovation, low prices and customer service remain at the heart of our business and over the coming months and years we will continue to implement and build on this successful strategy as we constantly look at new and improved ways to run our business.”
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