After posting another quarter of falling sales, Asda stated yesterday that it was determined to “keep grocery bills in check” with recent value initiatives proving popular with its customers.
During its second quarter to 30 June, the group’s like-for-like sales (excluding fuel) fell by 1.9% against tough comparatives with the previous year when Covid restrictions boosted demand in the grocery sector.
However, the figure was a significant improvement on the 9.2% decline during the previous three months, with Asda saying it delivered positive like-for-like sales towards the end of the latest period, with this growth trajectory continuing its current quarter.
This is being driven by investment in improving its price competitiveness amid the cost-of-living crisis. The quarter saw the rollout of Asda’s new ‘Just Essentials’ value range, with 220 products now available in stores, replacing its previous Smart Price own brand.
The group is hoping the new budget range will help it win back shoppers from the discounters, which are currently prospering as consumers face a squeeze on their spending power. Asda stated that ‘Just Essentials’ products had proved “very popular with value-conscious customers”, with one in three regularly shopping the range, resulting in growth of 19% ahead of the market (Kantar – 12 weeks ending 07/08/22).
Asda has also rolled out its Rewards loyalty programme and expanded its ‘Dropped & Locked’ campaign to include more than 250 everyday products that will have their prices fixed for the rest of 2022. Meanwhile, the group confirmed yesterday that its ‘Kids Eat for £1’ offer currently running in all its cafes during the school holidays has been extended for the rest of this year.
“Every week millions of customers visit our stores or shop with us online and we know many of them are struggling with rising living costs that show no sign of easing,” said Mohsin Issa, Asda’s co-owner.
“We are determined to do all we can to support these customers during these tough times by keeping their grocery bills in check while delivering added value through initiatives such as Dropped & Locked and the Kids Eat for £1 offer in Asda cafes.”
