Asda sales growth slows but grocer forecasts bumper online Christmas
Asda’s sales growth slowed in the third quarter as lockdown restrictions lifted and hospitality businesses reopened, the supermarket announced this morning as it said customers are already stocking up for a “very different” Christmas this year.
The grocer’s like-for-like sales excluding fuel were up 2.7 per cent in the three months ended 30 September, compared to growth of 3.8 per cent in the previous quarter.
The third quarter coincided with the end of the first UK-wide coronavirus lockdown, and included pubs reopening on 4 July and the government’s Eat Out to Help Out discount scheme in August, which prompted more consumers to dine outside of the home.
Asda said growth during the most recent trading period was driven by strong performance in core grocery sales, back to school clothing and online shopping.
Combined online net sales for Asda and its George clothing brand were up 72 per cent as customers continued to shop digitally, despite the reopening of non-essential stores.
The supermarket, which was recently sold to the Issa brothers by US retail giant Walmart, said today that it expects the rapid growth in online shopping to continue over the crucial Christmas trading period, and has increased its delivery service to 765,000 slots per week.
Customers have already started to prepare for the festive season, Asda said, with sales of Christmas trees up 83 per cent compared to last year.
Sales of festive lights, Christmas puddings and mince pies have also surged 57 per cent, 71 per cent and 44 per cent respectively.
Asda reported that consumers are preparing to have smaller gatherings this year in response to coronavirus measures. Sales of frozen turkey crowns, which feed between three and four people, have soared 230 per cent compared to last year.
Roger Burnley, Asda chief executive, said: “After a rollercoaster year it’s clear our customers are already planning for a very different Christmas.
“We have already seen a marked shift in buying patterns with customers stocking up their freezers and cupboards with festive essentials earlier than ever before, which suggests they are getting used to expecting the unexpected but preparing to enjoy themselves as much as possible.
“Whatever happens during the next few weeks, we are totally focused on delivering a great Christmas for our customers during these uncertain times.”