Bond has seen through Asda's recovery plan

Bond has seen through Asda's recovery plan

Asda chief executive Andy Bond has warned suppliers that the UK number-two supermarket will continue to roll back prices by keeping costs down, and he urged Asda suppliers to do the same.

The warning came after the announcement that the Wal-Mart-owned chain has beaten its sales and profits targets for the year to January, with like-for-like revenue up in the “mid-single digits”.

Asda has achieved above-market growth for the last 12 months, and has been described by its parent company as a “winner in the UK”.

Bond said: "We, along with other retailers, have a responsibility to keep a lid on inflation. We will continue to be the undisputed price leader in the UK, aggressively rolling back prices by focusing on reducing our costs. We will also be challenging our suppliers to do the same.”

Bond believes that Asda will benefit from the Competition Commission's recommended "competition test" for new supermarket openings, which theoretically would allow Asda to double the number of store openings each year. "The only net beneficiary of the competition test will be Asda. We will grow faster as a consequence," he said.

Asda said today [Wednesday] that it will create 9,000 jobs and open between 10 and 12 outlets across the UK this year. The new positions will be created through the new store openings, branch extensions and business expansion into areas such as pharmacies.

"This major investment demonstrates our on-going commitment to bringing low prices and fantastic service to even more people across the UK," Asda chief financial officer Judith Mckenna said in a statement.

"We have an impressive track record of regenerating areas at the edge of and in town centres throughout the UK, showing our ongoing commitment to local communities."

The UK accounts for more than half of Wal-Mart's overseas operations.

Mike Duke, Wal-Mart's head of international operation, said: “Asda was a winner in the UK, being the fastest growing of the four big retailers. In fact, Asda achieved above-market growth every single month this year.”

Topics