The UK's second-largest retailer Asda has posted a like-for-like sales increase of 0.7 per cent for the second quarter of the year, compared with 2.2 per cent in the first three months of the year.
With renewed compeition on price from market leader Tesco – itself under pressure to turn around its recent poor performance – and from Sainsbury's, Asda has nevertheless seen its sale grow faster than those of its nearest rivals, according to the latest market data.
Commenting on the results, Asda finance director Rob McWilliam said the company refused to run 'unsustainable promotions' and would continue to focus on low prices for basic items including fresh fruit and vegetables.
'There has been an increasing number of promotions, vouchers and frankly gimmicks out there to try to disguise a weak price position,' he said. 'That is not in customers' interests and is clearly not sustainable.'
Between 1 April and 30 June, Asda's net sales and comparable sales – both excluding fuel – reportedly increased by 3.2 and 0.7 per cent respectively.
The supermarket giant also reported that its online business grew by 22.1 per cent in the three-month period.
'We have continued to improve our sales and grow ahead of the market through a combination of lowering more prices and driving even harder on product quality,' said Asda's chief executive and president Andy Clarke.
Asda has invested over £100m (€127.5m) in developing its food ranges over the last two years and Clarke was full of praise for the results.
He concluded: 'Our 'real value' strategy is paying dividends, and enabling us to grow the business in a sustainable way.'
In a recent television advertisement, Asda sought to explain how it goes the extra mile to make sure the quality of its fresh fruit and vegetables is just right:
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