Grocery chain Asda has reported a like-for-like sales rise of 0.7 per cent for its second quarter in financial results published today.
Net sales grew 3.2 per cent over the 13 weeks to June 30th 2012, driven by strong performances in grocery thanks to a £113 million investment in development of its food ranges, while apparel and electronics also fared well.
Parent company Walmart released its Q2 earnings today, reporting a net sales increase of 4.5 per cent year-on-year and Doug McMillon, Walmart International President & CEO, said that the UK supermarket had enjoyed a strong performance “despite a difficult consumer environment.”
He added: “The UK’s gross profit rate has increased slightly from last year due to strong inventory control in non-food merchandise.
“Second quarter expenses grew slower than sales, as Asda continues to develop sustainable efficiency savings through process improvements.”
Online sales rocketed 22.1 per cent over the period, which follows news in June that Asda’s Chief Information Officer Cheryl Millington was hired by competitor Waitrose as its new IT Director.
Commenting on the strong results, Andy Clarke, CEO and President of Asda said:
“I’m really proud of our performance again this quarter. We have continued to increase our sales and grow ahead of the market through a combination of lowering more prices and driving even harder on product quality.
“Our ‘real value’ strategy is paying dividends, and enabling us to grow the business in a sustainable way.
“Asda has and always will be the price leader, but we know that a tighter budget does not limit mum’s desire to give her family the absolute best.
“We’re redefining what real value means and showing that price and quality aren’t mutually exclusive.”