Asda has seen its sales grow for the fourth consecutive quarter as it looks forward to a potential £15 billion merger with Sainsbury’s.
The retailer enjoyed like-for-like sales growth of 3.4 per cent in the first three months of 2018, with online sales (up 8.3 per cent) helping to drive the chain’s encouraging performance.
Adjusting for an early Easter, which fell in the first quarter this year, like-for-like sales rises were more modest at just one per cent.
The accounts follow the recent news that Asda may merge with Sainsbury’s in a deal that would give the two supermarkets a larger market share than the UK’s biggest supermarket Tesco.
Asda’s president and chief executive, Roger Burnley, said: “Our Q1 performance – even when adjusted for increased sales from an early Easter – represents genuine momentum with four consecutive quarters of growth.
“Whilst we are not complacent, we are positive about our growing momentum and excited by the opportunity that our proposed merger with Sainsbury’s PLC offers to accelerate our successful strategy and go further, faster.”
During the sales period the supermarket launched 216 new own brand products, including 29 in its 'free from' range; extended everyday low prices to 667 lines that shoppers buy most; and introduced scan-and-go technology in 100 stores.
Asda welcomed 246,000 new bricks-and-mortar and online shoppers during the quarter, with voice ordering via Google Assistant helping to make online shopping more convenient.
Commenting on Asda’s proposed merger with Sainsbury’s, Walmart’s president and chief executive Doug McMillon said: “We were pleased with the response of our colleagues in the UK… We believe this proposed combination is good for customers and colleagues, as well as shareholders.”
