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Asda blames 7.5% sales drop on fierce competition and food deflation

Colin LeyBy Colin LeyAugust 18, 20161 Min Read
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Fierce competition and food deflation have been highlighted as the key reasons behind a 7.5% drop in sales at Asda during the past three months, registering the supermarket’s worst quarterly performance on record.

Asda, which is part of Walmart, is currently committed to a £1.5 billion programme of price reductions, spread over five years, with the aim winning customers back, largely in the face of market share growth by the major discounters, Aldi and Lidl.

“Fierce competition and food deflation continue to challenge the (UK) market, significantly impacting traffic and sales trends,” said Walmart chief executive, Doug McMillon.

“Our strategy remains focused on improving retail basics; simplifying and strengthening the offer through improved availability and assortment discipline, reducing costs through our cost analytics programme and driving sales through strategic price investments where we remain committed to the previously announced five-year £1.5bn price investment.”

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Colin Ley

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