Asda could see return to growth for first time in 3 years

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Asda could see

Asda could see a turnaround in its dismal financial fortunes amid the release of its second quarter results, while thousands of employees face possible redundancy.

On Thursday, the Walmart-owned grocer will reveal its latest figures and analysts are expecting to see the first quarter of positive sales growth in three years, potentially jumping around two per cent.

This follows its worst year of sales since being acquired by Walmart, when pre-tax profits crashed 19 per cent to £791.7 million  and total sales dropped 3.2 per cent drop to £21.7 billion.

READ MORE:  Asda lays bare disastrous 2016 with pre-tax profits crashing 19%

The retailer has struggled to keep its head above water amid increasing pressure from discounters Aldi and Lidl and larger rivals solidifying their offering with convenience and supplier buy-outs.

Yet a return to shop price inflation following the fall in the pound and the appointment of new boss Sean Clarke have so far shown marginal signs of improvement for Asda, and analysts expect this trend to continue.

Clarke has focused on targeted price reductions and has reduced the number of products on shelves by 25 per cent as he embarks on a turnaround strategy.

This includes a massive cost reduction scheme which will see hundreds of employees‘ working hours slashed and hundreds more lose their jobs altogether.

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