Wal-Mart Stores Inc. revealed its third quarter (Q3) results this week, and in turn also reported on its international operations, including those at UK-based Asda.
In an analyst conference call, Walmart International president and chief executive Doug McMillon revealed that its UK arm had overseen a solid third quarter, with sales up and operating income growing faster than sales, excluding fuel.
'In the third quarter of this year, comparable sales, excluding fuel, increased 1.3 per cent,' McMillon said. 'Traffic declined by 1.3 per cent and average ticket increased 2.6 per cent, as customers continue to consolidate their trips in the face of high fuel prices.'
McMillon pointed out that the UK grocery market was on the verge of the promotion-oriented pre-Christmas period, but that Asda would continue with a 'simple promise to customers', that prices were 10 per cent cheaper than the competition on comparable baskets, or the difference is refunded.
'And Asda’s customers like it,' he added. 'Since this year, the prices of more than 13m baskets have been checked online. Expenses grew slower than sales in the third quarter.
'To delivercost savings, sustainable productivity programs are embedded in our operations, which help fund lower prices for customers. For example, theFewer, Cheaper Miles program is delivering cost savings within the distribution network by reducing fuel consumption and carbon emissions.'
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