Asda has enjoyed "above plan" second-quarter sales, according to owner Wal-Mart Stores.
Asda said that underlying sales had risen by about two per cent in the three months to the end of July, a significant improvement on the company’s last reported sales growth, when Asda revealed its first decline in underlying sales since it was taken over by its American parent.
The retail giant said improved sales performance was boosted by a higher customer count and ‘improved shopper perception’.
But Wal-Mart also admitted declining margins in the competitive UK market lead to operating income falling short of expectations.
The launch of more than 500 new or improved chilled food lines and a new range of freshly prepared ‘Go Cook’ meals is said to have contributed to the Asda sales growth.
A Wal-Mart spokesperson said: “We are encouraged because our sales performance and merchandising efforts in the UK have led to an increase in the market share when compared to the same period last year.”
The latest figures from TNS show that Asda increased its market share from 16.4 per cent in the 12 weeks to May 21 to 16.6 per cent in the 12 weeks to July 16.
Asda has opened seven new stores this year to date, including trial Asda Essential stores, one Asda Living outlet, and four superstores.
Wal-Mart, meanwhile, posted its first fall in profits for a decade. Overall, the group's sales for the three months to 31 July were up 11 per cent to $85.4bn (£45.1bn), but missed the $86.2bn average estimate of analysts.
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