Asda registered a 5.5 per cent increase in second-quarter like-for-like sales excluding fuel, and the Wal-Mart owned chain claims to be gaining market share faster than at any point in its recent history.
Leeds-based Asda said today that its underlying sales, adjusted for the timing of Easter, rose six per cent in the three months to June 30, up from five per cent in the first quarter.
The UK’s number two supermarket chain saw its market share rise 0.6 percentage points to 12.3 per cent year on year, in the 12 weeks to July 13.
Chief financial officer Judith McKenna said: "Asda is gaining market share at the fastest rate in many years. In addition, Asda surpassed its plans for both sales and operating income, in spite of a slowing economy."
Asda said it 700,000 more consumers are shopping its aisles every week than a year ago and 25 per cent of them are from the AB social groups. Sales of organics and premium ranges are up 36 per cent and 20 per cent on last year.
Stores in the UK’s holiday resorts have performed strongly as more British people stay in the country rather than holiday abroad. "The coastal stores have traded phenomenally well," McKenna. "All of the south coast seaside stores have done well."
Asda, she added, has done “some cute things really quickly" to adapt to the higher demand across its coastal network.
And Asda's stores in London also put in a strong showing, as the capital’s consumers trade down. McKenna said Asda's London stores have also improved their service standards and availability. The chain said that while shoppers are attracted to stores by high-profile promotions, they are “recognising the value across the store” and "buying full baskets".
Parent company Wal-Mart posted a 17 per cent uplift in its second-quarter profit.
