First-quarter earnings at Asda have fallen, the retailer admitted today in a pre-recorded conference call.
The message said that profits had dropped “slightly”, while US owner Wal-Mart reported that the UK market continues to be “soft”.
In a short and succinct statement, Wal-Mart’s Mike Duke said that Asda is concentrating on attracting “more selective shoppers”. But stopped short of saying whether the latest results fall short of group targets for the Leeds-based chain, which accounts for roughly 50 per cent of the US monolith’s international turnover.
Asda chief executive Andy Bond has committed to adding store formats and broadening the company's fresh-food offer to win customers from the likes of Tesco, but the change of structure is in its infancy and has failed to win immediate market share gains.
Duke said that Asda plans to open 25 to 30 stores this year. including a mixture of supermarkets, non-food shops and neighborhood outlets. A second Essentials outlet - concentrating on basic own-label products - opened in Leeds yesterday.
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