Walmart results: Asda third quarter sales drop as parent company’s performance improves
Asda's chief executive Andy Clarke will be coming under greater pressure, as the troubled supermarket reveals another drop in sales.
Back in August, Clarke said the supermarket had reached its nadir – but today it appears to have fallen further.
Like-for-likes at the Walmart-owned grocer fell 4.5 per cent for the 13 weeks to 30 September. That comes as the US-based parent company posted a 1.5 per cent growth in total sales.
Speaking in London today, Clarke admitted it was "another challenging quarter".
"Sales volumes remain under pressure from price deflation and the intensely competitive background remains throughout the food sector," he said.
But he insisted Asda had "the financial strength and clear plan to sustain us through this period", highlighting the 18-month turnaround plan "Project Renewal" that he launched in October. Clarke said this project would involve "a simpler way of doing business" in order to "deliver market leading value in a way customers will notice".
Recently Clarke said Asda was "calling time" on Black Friday and would not be participating in the retail bonanza it had helped to introduce to the UK.
“I’m confident that by reinforcing our offer we can further extend our price advantage over major competitors and close the gap against the limited assortment discounters – not only on price, but across range, service and quality," he said.
Clarke's comments come on the day it was revealed that Aldi and Lidl accounted for 10 per cent of all spend in the grocery sector for the past 12 weeks.
"I’m clear that only businesses which are well positioned, financially strong and able to efficiently deliver what their customers want can be successful in this environment," Clarke said.