UK supermarket Asda has reported a 1.6 per cent rise in like-for-like sales during the fourth quarter of 2010, while sounding a note of caution about the year ahead.
The figure, which excludes fuel, means the Walmart-owned retailer outperformed the UK grocery market in the second half of last year.
But chief executive Andy Clarke commented: 'You can only assume that customer confidence will become more challenging.'
The company claimed a new price guarantee and the expansion of its premium-range products had driven the improvement.
In particular, sales of Extra Special clementines doubled over the period.
Asda is just behind Sainsbury's as the fastest growing of the UK's top grocers.
Including the impact of an increase in VAT sales tax, Asda's sales were up 2.6 per cent.
Sainsbury's recently reported a 2.8 per cent rise in like-for-like sales.
