Asda's like-for-like sales fell by 5.7 per cent in the first quarter of 2016, with the retailer citing shoppers switching to discounters.
Sales fall 4.7 per cent over the year as a whole, while net income for parent company Walmart fell 7.9 per cent to $4.57 billion (£3.1bn).
Price cuts and better availability were “not enough” to counter volume declines in large stores, according to chief financial officer for parent company Walmart, Brett Biggs. “The UK continues to struggle, due primarily to fierce competition,” he said.
In a presentation to investors, Biggs revealed that shopper numbers had declined by five per cent during the 13 weeks to 30 March, the Guardian reported, while average spend was also down by 0.7 per cent compared to the same period last year.
Asda has been attempting to use its ‘project renewal’ over the past year to simplify its offer and drive sales. This has included the loss of 750 jobs in store and head office, the Guardian said, and slowing investment in new channels such as click and collect. Instead, the retailer is refurbishing 95 of its biggest stores.
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