Asda chief executive Andy Bond admitted to BBC radio this morning that the retailer had “lost its focus” before its recent turnaround.
He told Radio 5 Live that a significant improvement in the chain’s performance in the last 12 months has been due to it regaining sight of its customers’ core desires - “great prices, great product and great customer service”.
Bond said the pricing strategies of Asda’s supermarket rivals had been successful in attracting new shoppers into their stores, although he questioned the impact they are having on profitability. He added that Asda has now recognised its mistakes and that the last year's results illustrate that it is rectifying them.
The chain's owner, Wal-Mart, said Asda has "restored customer confidence" after a rocky patch a year ago in which it nearly lost its number two slot to Sainsbury's.
For the full year, Asda's profits slightly increased, although Wal-Mart did not provide any detailed figures. The final quarter was particularly strong with profits growing faster than revenue and like-for-like sales up in the "mid single digits".
Bond also called for the Competition Commission to address an imbalance in the ability of each chain to compete in all parts of the country. While the big four dominate on a national scale, he said, on a local basis it is very rare that consumers have the choice of the big four fascias. Only if that were the case, Bond added, would the supermarket chains be in a position to truly compete head-to-head in all localities.
