Asda, the UK unit of Wal-Mart, today (13 August) said that it is attracting an increasing number of value-conscious consumers, despite posting a drop-off in sales growth during the second quarter.
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The UK’s second-largest supermarket emphasised that it is now attracting 18m customers a week and has grown its market share to 17%, up from from 16.7% in the same period of last year.
“By continuing to be the lowest price retailer and by broadening our appeal, we’re attracting more customers, and increasing our sales volumes,” Asda CFO Judith McKenna said.
However, the company revealed that comparable-sales growth had slowed to 7.2%, down from growth of 8.4% in the first quarter of the year, as food inflation reached its lowest level in two years.
McKenna said that Asda’s food business “continues to outperform” as consumers increasingly look to save money by eating at home.
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By GlobalDataAsda’s view of the wider economic outlook continues to be cautious as UK consumer confidence remains low, driven by concerns about job security.
“Consumers continue to be somewhat cautious, with many people choosing to use any extra money they have to pay down debt and save more. This is not going to be a straight line economic recovery, however, in this environment, we are well placed to continue gaining market share by giving customers what they want – great products at low prices,” McKenna said.
