Doubts have been cast over Asda’s claims that its slowing sales growth is merely due to the recent bout of poor weather.
Asda claims that although it has the second-biggest market share, it has the smallest number of stores of the big four supermarket groups, meaning that customers often have to drive to its stores - something they were reluctant to do in the ice and snow.
But recent industry data has raised concerns about whether the snow is the only factor in this, ahead of the retailer reporting its annual results on Thursday.
Asda experienced the slowest growth of the big four supermarkets over Christmas and into the new year, according to Kantar Worldpanel.
Sales at Asda in the four weeks to January 24 rose just 2.1 per cent, compared with 5.1 per cent for Tesco, five per cent for Sainsbury’s and 9.5 per cent for Morrisons.
Asda's market share slipped in the four-week period as a consequence, and in the 12 weeks to January 24, when it fell from 17 per cent to 16.9 per cent.
In the corresponding 2009 period, the retailer performed much better, with its market share standing at a record 17.2 per cent.
Greg Lawless, analyst at Collins Stewart, told the
Shore Capital analyst Clive Black said: "It is a little bit perplexing. Asda has been in very good shape for the last couple of years.
"A steady Christmas and a seemingly weak January don't necessarily make a trend. We need to see the February, March and April market share data to establish whether an event becomes a trend."
People familiar with the data argue that it should not be judged on a few weeks' market share figures, which also include other supermarkets' new space. They also point out that Asda faced tough comparatives as it grew strongly in the year-earlier period. Indeed, they claim, indications are that Asda will still report robust trading on Thursday.
Although Asda runs stores from 8,000sqft to 102,000sqft, it is still best known for out-of-town superstores.
Asda is expected to outline plans for more smaller store formats in the next year, identified as an area of great success for rivals Tesco and Sainsbury’s. However, it will insist that this is not a convenience format.
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