Asda has revealed disappointing results for the first quarter, with profits below expectations.
In a recorded statement, Jay Fitzsimmons, Wal-Mart treasurer, said: “Operating profit in the quarter was below plan.”
It said the retailer had been hit by a slow down in high street spending and like-for-like sales had only increased by a low single digit percentage.
Total sales in the quarter had risen by a bit more, but were still at the "low end of the mid-single digit range," according to the company.
The news comes off the back of latest TNS data, which showed Asda to be losing market share, while Tesco and Sainsbury’s both increased.
Tesco moved from 29.5 per cent to 29.8 per cent, and Sainsbury’s jumped from 15.4 per cent to 15.8 per cent, however, Asda saw a fall from 16.9 per cent to 16.5 per cent.
Meanwhile, parent company Wal-Mart is finding competition tough and has warned it will struggle to meet its own profit targets in spring.
It said high energy prices were holding back consumer spending.
In the meantime, the retailer is now considering plans to enter the $180 billion Indian retail market.
“If I have an opportunity to bring stores into the market, we will get better knowledge and close cooperation with our suppliers ... and can even accelerate the growth of our exports," said John Menzer, chief executive of Wal-Mart International after a meeting with Prime Minister Manmohan Singh, the BBC reported.
The news comes soon after the Indian government announced plans to liberalise its domestic retail market which currently requires foreign investors to enter via franchise operations.
Several other Western retailers are also queuing up to enter the market if and when it is opened up.
