Walmart-owned UK retailer Asda has reported that year-on-year sales fell by 0.4 per cent, excluding petrol, during the second quarter (Q2) of the year, following on from a similar drop of 0.3 per cent through the first three months of 2010.
The news came at the same time as the release of data from Kantar Worldpanel, showing a fall in the group's market share of 0.3 per cent for the quarter ended 30 June.
However, Walmart International president and chief executive officer Doug McMillon said in a conference call that Asda continued to make good progress towards its strategic goals, and said that the acquisition of Netto UK from Dansk Supermarked would offer new locations and a platform for smaller formats.
Mr McMillon warned of tough times ahead for consumers over the next year, but added that the group remained committed to lowering prices and offering value.
'Asda's customers are facing recently announced tax increases and cuts in government spending,' he said. 'These are likely to cause our UK customers to face a challenging 12 to 18 months.
'Recent price reductions on high volume staples and the guaranteed lowest basket price shows Asda's commitment to providing the value our customers expect and trust us to deliver.'
Parent group Wal-Mart Stores Inc. revealed this week that overall net income for the second quarter of the year climbed 3.6 per cent, up to US$3.59bn (€2.79bn) from the US$3.47bn (€2.7bn) it recorded last year.
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