E Point Perfect

Asda like-for-like sales dip despite cost-of-living initiatives


Asda launches long awaited first-ever nationwide loyalty scheme
Asda has doubled down on consumer initiatives amid lower like for like sales
// Supermarket chain Asda sees like for like sales down 1.9% year on year during Q2
// Asda reaffirms further initiatives to help customers as cost of living crisis bites

Asda like-for-like sales excluding fuel fell by 1.9% year-on-year for the second quarter trading to 30 June.

The performance is a significant improvement on the 9.2% like-for-like decline the previous quarter of this year.

The supermarket delivered positive like-for-like sales towards the end of the quarter and this growth trajectory has continued into the third quarter, Asda said, driven by its continued investment in price and quality in core categories, including produce, meat, fish, and poultry.

The latest Asda Income Tracker showed that households were on average £160 worse off in July compared to last year, and during the second quarter Asda accelerated the rollout of its new budget friendly ‘Just Essentials’ range, which launched in May.

In total, 220 products are now available in stores – including a greater selection of fruit, vegetables, fresh meat, fish, and poultry products.

One in three customers regularly shop the range according to the company, resulting in growth of 19% ahead of the market, according to the latest Kantar data for the 12 weeks ending 7 August.

Asda has also expanded its ‘Dropped & Locked’ pricing campaign to include more than 250 products and will lock the prices of these for the rest of 2022 to give customers greater control over their shopping bills.

READ MORE: Asda reveals under-30s disposable income slashed

Asda has also confirmed that its ‘Kids Eat for £1’ offer currently running in all cafes during the school holidays has been extended for the rest of this year. The initiative was launched to help parents tackle the holiday period, with more than 330,000 meals served since the offer began in late June.

Asda co-owner Mohsin Issa said: “We are determined to do all we can to support these customers during these tough times by keeping their grocery bills in check while delivering added value through initiatives such as Dropped & Locked and the Kids Eat for £1 offer in Asda cafes.”

Earlier this month, the supermarket rolled out its new ‘Asda Rewards’ loyalty app to all stores and online. The app, which gives customers pounds off at the checkout rather than points, was launched following a series of successful regional trials.

More than two million customers have already downloaded the app and accumulated £7 million in their cash pots, which they can spend at Asda.

Asda added Ken Towle and Kris Comerford to its leadership team during the quarter as retail director and chief commercial officer for food. Asda also confirmed that Michael Gleeson will join the supermarket next year as chief financial officer.

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