Asda Comparable Sales Slip Further in 2Q
August 18 2016 - 8:48AM
Dow Jones News
By Ian Walker
LONDON--The decline in like-for-like sales at U.K. grocer Asda
accelerated in the second quarter, according to its parent Wal-Mart
Stores Inc. (WMT) Thursday, which it blamed on the competitive
environment and food deflation.
For the quarter ended June 30, like-for-like sales at the U.K.'s
third largest grocer by market share fell 7.5%, compared with a
fall of 5.7% in the previous quarter.
Traffic, the number of customers both online and in stores, fell
by 6% in the quarter, Wal-Mart said, while net sales were down
1.5%. Net sales are the value of goods bought by customers.
Wal-Mart Chief Executive Doug McMillon said the grocer's
strategy to turn things around is focused on improving the retail
basics. "We are simplifying and strengthening our offering through
improved availability and assortment discipline, reducing costs and
driving sales through strategic price investments," he said.
Wal-Mart said its U.K. management remains focused on improving
retail basics through delivery of 'project renewal,' part of the
company's plan to turn the business around.
The fall in net sales matched recent data from Kantar
Worldpanel, which monitors the household grocery purchasing habits
of 25,000 demographically representative households in the U.K.,
that showed the nation's average shopping basket in the 12 weeks
ended July 17 being 1.4% cheaper than a year ago.
U.K. grocers have been struggling of late as German discount
supermarkets Aldi and Lidl have taken both market share and sales
away from the big four.
Asda had a 15.5% market share in the 12 weeks ended July 17, the
latest data from Kantar. Tesco PLC's (TSCO.LN) market share was
28.3%, while J Sainsbury PLC's (SBRY.LN) was 16.3%.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
August 18, 2016 08:33 ET (12:33 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Walmart (NYSE:WMT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Walmart (NYSE:WMT)
Historical Stock Chart
From Apr 2023 to Apr 2024