Asda has achieved "very positive" quarterly results, despite the impact of a more difficult retail environment, said chief executive Andy Bond.
The Wal-Mart owned group, which does not release exact figures, registered like-for-like sales in low single digits in the three months to October 31. But the overall picture has been boosted by the addition of eight new stores, taking the total sales increase into mid-single digits.
Operating income was slightly above plan, but below last year, said Bond, who is two years into an improvement plan. He attributed this to Asda’s company's pricing strategy, which be said is paying off.
“For the ninth straight month we have grown our share of the market and beat our sales and profit plan," he said. "This clearly demonstrates that our commonsense approach to always lowering prices is continuing to pay off.
"We've cut 30,000 prices so far this year and customers are voting with their feet,” he said. “An extra three quarters of a million of them are coming through our doors because they know that when it comes to value there really is no place like Asda.
"With interest rate rises and the increased cost of Christmas, customers are feeling the pinch but retailers should stop blaming this, wet weather or consumer confidence for their sales performance."
Parent Wal-Mart posted third-quarter earnings of £1.38 billion, an eight per cent rise that beat Wall Street expectations.
• In other news, Asda is co-operating with the Office of Fair Trading as its long-running investigation into the price fixing of milk, cheese and butter draws to a close.
Today’s Daily Telegraph reports that in return for its co-operation Asda could receive a significant reduction in any possible fine, which analysts believe could amount to hundreds of millions of pounds.
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