Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UK supermarket Asda's like-for-like sales rise 9.6%

Published 15/08/2023, 16:03
© Reuters. FILE PHOTO: A woman pushes a shopping cart at an Asda superstore at the Gateshead Metrocentre, following the UK Supreme Court judgment on equal pay claims case, in Gateshead, Britain, March 26, 2021. REUTERS/Lee Smith/File Photo
TSCO
-
ZW
-

LONDON (Reuters) - British supermarket group Asda reported stronger like-for-like sales in the second quarter, driven by higher demand for cheaper alternatives to branded grocery products amid a cost-of-living crisis, it said on Tuesday.

Excluding fuel, like-for-like sales jumped 9.6% in the three months ended June 30, while revenue reached 5.4 billion pounds ($6.87 billion), Asda said.

Asda, Britain's No. 3 grocer after market leader Tesco (LON:TSCO) and Sainsbury's has cut prices on some products, particularly on own label items, and last year it launched "Just Essentials", a value range targeting those on tight budgets.

Sales from "Just Essentials" surged 87% in the second quarter while own-brand sales recorded a 14.7% increase.

Asda, owned by brothers Zuber and Mohsin Issa and private equity firm TDR Capital, is still facing inflation in parts of its cost base, but has passed on savings from lower commodity prices in items such as milk and wheat to shoppers, Chief Financial Officer Michael Gleeson said in a statement.

Many British households remain constrained by tight budgets amid a surge in living costs that began last year, when inflation touched 40-year highs driven initially by soaring energy prices.

Price rises have since eased but at an annual rate still above 7%, they remain high by historical standards and the highest among the world's top seven rich economies.

Asda said more than 5 million customers were now regularly using its Asda Rewards loyalty app.

© Reuters. FILE PHOTO: A woman pushes a shopping cart at an Asda superstore at the Gateshead Metrocentre, following the UK Supreme Court judgment on equal pay claims case, in Gateshead, Britain, March 26, 2021. REUTERS/Lee Smith/File Photo

It also added that a 2.3 billion pound deal to buy the bulk of petrol station operator EG Group's UK and Ireland business was on track to close in the fourth quarter.

($1 = 0.7857 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.