Asda reports 3.4% growth in sales for first quarter of 2018

Asda has seen an increase in sales as Walmart reports its financial returns for the first quarter of 2018.

During the period between 1st January to 31st March, the Leeds-headquartered supermarket saw like-for-like sales grew by 3.4%.

Adjusting for Easter, which fell within the first quarter of 2018, like-for-like sales increased by 1.0%.

Asda attracted 246,000 new customers to its stores in the quarter, where online sales also rose 8.3%.

These financial results follow on from the announcement that Sainsbury’s and Asda are planning to merge.

Roger Burnley, Asda president and CEO, commented: “Our Q1 performance – even when adjusted for increased sales from an early Easter – represents genuine momentum with four consecutive quarters of growth.

“During the first three months of the year, we have continued to invest sensibly where it matters most to our customers with lower prices, innovation in our Own Brand and further improving their shopping experience whether in store or online.

“Through Q1, we again stepped on our commitment to every day low prices with the launch of ‘Rolled Back Staying Back’ which now extends to 667 lines that customers buy the most, launched 216 new Own Brand products including adding 29 to ‘free from’, a range which is increasingly important to our customers.

“Whilst we are not complacent, we are positive about our growing momentum and excited by the opportunity that our proposed merger with Sainsbury’s PLC offers to accelerate our successful strategy and go further, faster.”

Doug McMillon, Walmart president and CEO, said:“Recently, we took some strategic actions to further position our portfolio for long-term growth. We were pleased with the response of our colleagues in the UK following our announcement of the proposed merger of Asda with Sainsbury.

“We believe this proposed combination is good for customers and colleagues as well as shareholders. In the UK, we saw sequential improvement in the business as comp sales increased for the fourth consecutive quarter. We continue to remain focused on improving the customer experience in our stores and providing value for customers by investing in lower prices.”

Brett Biggs, Walmart chief financial officer, added: “We continue to execute against our strategic priorities of delivering disciplined growth and being a low cost operator. We’re being thoughtful and deliberate as we assess our portfolio and make decisions about where and how we’ll grow.

“Turning to the UK, net sales increased 3.7% and comp sales grew 3.4 %. The team continues to focus on improving the customer experience through price perception and quality private brand products.”

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