Asda second-quarter revenue rises 9.6% to £5.4bn

Leeds-based supermarket giant Asda has reported a 9.6% increase in like-for-like sales during the second quarter of 2023 compared to the same period a year earlier — and up 1.8% up on the previous quarter.

Asda’s revenues, excluding fuel, were £5.4 billion for the quarter.

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.

“Asda’s continued investment in driving value for its customers through a combination of low prices and improved quality helped to drive a 14.7% increase in own-brand sales during the quarter compared to a year earlier,” said Asda.

“Just Essentials, Asda’s value range launched last year specifically to help families shop on the tightest budgets, is now firmly established as the number one value range in the market with 20.2% market share and sales during the quarter were 87% up year-on-year.

“More than 22m customers have now bought Just Essentials products since the range launched in May 2022.

“With the latest Asda Income Tracker showing that 40% of UK households had negative disposable income across the quarter – meaning their take home pay did not cover spending on bills or essentials – Asda redoubled its value initiatives to provide extra support for customers during the quarter.”

Mohsin Issa said: “We know that thousands of families continue to struggle with the cost of living, and we’re committed to doing all we can to support them.

“This quarter, we have locked the price of over 500 everyday items to help families keep a handle on their budgets, as well as reducing the price of over 200 own–label items by an average of 9% – including fresh fruit, vegetables, cupboard staples and ready meals.

“It’s this constant focus on keeping our prices low that has seen us win the Grocer 33 pricing award for the 26th consecutive year.

“In addition to investing in value on the shelf, we’re also the only major retailer to give money back to customers every time they shop through our Asda Rewards loyalty app.

“More than 5m customers regularly use the app and have earned over £200m since launch to spend in store or online.

“We have also extended our hugely popular kids eat for £1 cafes offer until the end of the year.

“I am incredibly proud that we have been able to serve over two million meals to kids since we launched the initiative last June, investing £1.3m to date to keep the prices pegged at £1.”