Asda has outperformed sales and profit targets in the second quarter of 2007, attributing its rise in market share to price cuts and a simplified product mix.
The Wal-Mart-owned retailer saw like-for-like sales increase in the mid-single digits in the three months to July 31. Its share of the grocery market stood at 11.7 per cent in the 12 weeks to July 15.
“The progress on customer numbers and market share gain has been steady over the past 18 months, and demonstrates the success of the Asda strategy,” said Charles Holley, Wal-Mart’s finance chief for its international operations, in a recorded call.
Along with a strong performance in Brazil, Argentina and China, Asda’s results provide a bright spot for Wal-Mart amid a tricky period, following a lower-than-expected quarterly profit and a slash in the firm’s full-year earnings forecast.
Chief executive Lee Scott blamed the Wal-Mart group’s disappointing performance on economic pressure on the company’s 176 million global customers.
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