Asda sales jump but grocer warns over consumer confidence slump
Asda reported a jump in sales in the first quarter of the year, but warned that customers are increasingly concerned about the economic impact of the coronavirus pandemic.
The supermarket, which is owned by US retail giant Walmart, said like-for-like sales excluding fuel were up 3.5 per cent due to a surge in stockpiling at the beginning of the crisis in the UK.
Visits to Asda’s website reached 3,500 a minute in the week beginning 18 March as shoppers scrambled to get an online delivery slot.
However, sales of non-food items such as clothing, fuel and electronics dipped in the three months to 31 March.
The grocer also warned that its latest income tracker showed that household incomes dipped 0.6 per cent in March, the first drop since 2017.
Meanwhile, 90 per cent of Asda customers said they were worried about an economic depression and two-thirds of shoppers were concerned about safety in supermarkets.
Asda will introduce more long-term social distancing measures to boost consumer confidence.
It said it will trial a “virtual queuing” system at its store in Middleton near Leeds. This will allow customers to log in to the queue remotely and wait in their car before entering the store.
Asda chief executive Roger Burnley said: ““Reflecting on the last quarter – to 31 March feels a lifetime ago in the ever-changing landscape we find ourselves currently operating in.
“But, first and foremost I want to extend my absolute and heartfelt thanks to our colleagues who have risen to the challenge of this pandemic and served our customers so well in unprecedented circumstances.
“It has become increasingly clear that Covid-19 is set to be part of our lives for months to come and we know that customers have moved on from an initial worry about the virus, to more longer term concerns about the implications of lockdown on their family, wellbeing and finances.
“And, as more people return to work, they are juggling the demands of cooking more and having less time to shop for groceries.”