Asda has announced that like-for-like sales excluding fuel fell by 0.3 per cent through the first quarter (Q1) of the year, the result of a slowing market since the turn of the year.
The group, which is owned by US retail giant Wal-Mart Stores Inc., said that total sales had increased in the 'low single digits' through the quarter, while profits had grown ahead of sales, beating internal targets.
'As we've already said, by our own high standards, our first quarter sales were disappointing,' said Andy Bond, now chairman of the Asda executive committee after recently leaving his position as president and CEO. 'The market has slowed down significantly since the turn of the year, and I expect conditions to remain tough for some time.'
However, Mr Bond did note that the group was making good progress on plans outlined to analysts in April, with a four-pronged strategy to build sales and broaden the retailer's appeal 'beginning to take shape'.
Doug McMillon, president and CEO of Walmart International, told a conference call that Asda had been making good progress towards its goals, and that the leadership team, headed up by new president and CEO Andy Clarke, would continue progress and deliver positive sales momentum.
'Listening to customers, it's clearer than ever that the second half of this year will be challenging for them,' Mr Clarke added. 'High petrol prices, and the prospect of tax increases from the incoming government, are weighing heavily on their minds. It is our responsibility to deliver the plan we've laid out, and by doing so help lower the cost of living for our customers.'
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