Asda has announced a third quarter like-for-like sales increase of 0.3 per cent, for the 12 weeks ending 29 September – a drop in sales following a 0.7 per cent increase in the last quarter.
The UK-based retailer also increased its market share by 0.1 percentage points, to 17.5 per cent, and said that it's growing ahead of the market, and rivals including Tesco and Morrisons.
Despite concerns about the profitability of its click and collect service, Asda said its online business is “profitable” with sales doubling to almost £1bn in the last two years, and that its online service has been boosted by parent company Walmart's e-commerce expertise.
'The power of Walmart is helping from a talent perspective and they are talking in ways we can’t begin to think,' said Judith McKenna, Asda chief operating officer.
However, despite the solid results, Asda boss Andy Clarke said that the retailer will remain cautious as consumers are still feeling the impact of the recession.
'These are solid results in a tough market but two-thirds of mums expect next year’s economy to be more challenging than this year,' said Clarke.
