Asda Q2 revenue slips 2% to £4.9bn

Leeds-based supermarket giant Asda said its second-quarter revenue, excluding fuel, fell about 2% to £4.9 billion

Asda also said it is taking “far-reaching steps” to support customers during the current cost of living crisis.

“The quarter, which covered the period from 1st April to 30th June, saw like for like sales (excluding fuel) fall by 1.9% year-on-year, however, comparatives with the previous year were impacted by the Covid restrictions in place during Q2 2021,” said Asda.

“Asda’s performance in Q2 represents a significant improvement on the 9.2% decline in like for like sales during 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 Q3, driven by its continued investment in price and quality in core categories, including produce, meat, fish, and poultry.”

Blackburn-based billionaire brothers Mohsin and Zuber Issa and private equity firm TDR Capital completed the £6.8 billion acquisition of a majority ownership stake in Asda from Walmart Inc. in 2021.

Walmart retains an equity investment in Asda, with an ongoing commercial relationship and a seat on the board.

During Q2, Asda welcomed Ken Towle and Kris Comerford to its leadership team 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.

Asda said that with the latest Asda Income Tracker showing households were on average £160 worse off in July compared to last year, the supermarket has stepped up its support for customers struggling with spiralling living costs.

“During Q2 Asda accelerated rollout of its new budget friendly ‘Just Essentials’ range, which launched in May, and 220 products are now available in stores – including a greater selection of fruit, vegetables, fresh meat, fish, and poultry products,” said Asda.

“Just Essentials has proved very popular with value-conscious customers, with one in three regularly shopping the range, resulting in growth of 19% ahead of the market, according to the latest Kantar data (12-weeks ending 07/08/22).

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

“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 holiday hunger at a time when family budgets are squeezed by rising living costs and has been hugely popular with more than 330,000 meals served since the offer began in late June.”

Mohsin Issa said: “Every week millions of customers visit our stores or shop with us online and we know many of them are struggling with rising living costs that show no sign of easing.

“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.”

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