Retail giant Asda has seen a slowdown in its sales growth as customers become more selective in the tough economic environment.
The UK’s second-biggest supermarket chain, after Tesco, said that sales at shops open over a year, excluding fuel and VAT, were up 0.7 per cent in the 13 weeks to 30 June.
That followed a rise of 2.2 per cent in the first quarter of the year, when growth was driven by a focus on low prices and revamped fresh food lines.
Asda’s chief executive and president Andy Clarke – who began his career with the company as manager of its store at The Jewel in Edinburgh – said : “We have continued to increase our sales and grow ahead of the market through a combination of lowering more prices and driving even harder on product quality.”
Though even traditionally resilient grocers are suffering in the double-dip recession, industry data has shown Asda growing sales faster than all of its main UK rivals over the last three months.
Market leader Tesco has stepped up promotions and vouchers following a shock profit warning in January.
Asda, which trades from about 550 stores, lagged the UK grocery market in 2010 but has fought back since, helped by its purchase of smaller format Netto stores and a re-launch of its own-brand food range.
The retailer said it has invested £113 million in improving the quality of its food ranges in the past two years. It has also benefited from its price guarantee which offers to refund customers the difference, via a voucher, if an online price comparison website does not show their shopping was at least 10 per cent cheaper than at a rival. The promotion attracted some 600,000 online checks a week.
