Asda bosses blame Brexit uncertainty for sales dip

2317
Asda bosses blame Brexit uncertainty for sales dip
Walmart CEO Doug McMillon said Brexit fears "continue to negatively affect customer spending patterns" for Asda.
// Asda like-for-likes slipped 0.5% in its third quarter
// This compares to a 0.5% rise in the previous quarter
// Asda CEO Roger Burnley and Walmart boss Doug McMillon blamed Brexit for the decline

Asda bosses have blamed “customer concerns over Brexit” after the Big 4 giant suffered a dip in sales over the past three months.

The Walmart-owned grocer reported a 0.5 per cent decline in like-for-like sales in third quarter period ending September 30, compared to a 0.5 per cent growth in the previous quarter.

Walmart chief executive and president Doug McMillon said Brexit fears “continue to negatively affect customer spending patterns” for the chain.

Asda chief executive Roger Burnley added that customers have had “little respite” from political and economic uncertainty in recent months, which has influenced spending.


READ MORE: 


Earlier this week, market share data on the UK grocery sector from Kantar Worldpanel indicated that Asda saw sales decline by 1.2 per cent in the 12 weeks to November 3.

The Big 4 supermarkets all reported recent declines, according to Kantar Worldpanel, falling behind rapid growth from German discounter rivals Aldi and Lidl.

Asda and rival Sainsbury’s attempted to counteract the competition of the discounters by agreeing a multibillion-pound merger last year, but the move collapsed after it was blocked by the CMA in April.

In July, Burnley said Asda could be floated on the stock market in the next two or three years, as Walmart looks to offload the UK business.

Despite the slump in total sales, Asda said it saw “strong” online grocery sales over the period, which it claimed was “two times the growth of the overall market”.

Burnley said the retailer would “work hard to keep prices low” for customers despite weaker consumer spending.

“I am absolutely committed to securing the future of our business for the benefit of our colleagues, our customers and our communities – whatever external challenges we may face,” he said.

“As we enter the busiest trading period of the year, I am confident that we are ready and raring to go and I would like to take this opportunity to say thank you to every one of our colleagues, who I know will pull out all the stops to make this Christmas extra special for our customers.

“Whilst the retail sector continues to face challenges as a whole, I know that Asda is built on strong foundations and is at its best when we are able to work as one team, delivering for our customers.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

8 COMMENTS

  1. Are ASDA bosses blinkered! It’s not Brexit causing their demise in profits etc! It’s the way they treat their staff….
    I for one have now refused to shop at my local store as they blank out disabled parking spots in favour of a porta cabin for toilets as they upgrade the store and the staff are also fed up with their pay and conditions fiasco…. They have no consideration for customers or staff.

    I’m happy to shop at the local nearby Aldi instead!

    • Stop blaming Brexit for everything, your sales are down because of the way you have gone about the changes in hours and rota and you need to take time out to look at the inside of some of your stores. I used to always shop at Asda but over the last 2 years or so the place has become very shabby, the toilets are very poor, the restaurant prices keep going up but quality of the food has gone down, there are boxes and palettes untidily in the gangways all over the fruit and veg area and every week you are out of stock of regular items and dont get me started on your prices, prices dont slowly go up, they leap up yet the quality goes down.

  2. If this isn’t proof businesses will blame Brexit for their self inflicted problems I don’t know what isn’t. Both Asda and Arcadia have under invested in staff and stores and have a poor internet business yet “global slowdown” “Brexit” and “tough competition” are blamed.

  3. Agree with all the comments here. Asda are treating their staff appallingly. I refuse to shop there now. We as customers at least can vote with our feet and spend our hard earned pound elsewhere

  4. I am very seriously thinking of taking my custom elsewhere, we have a weekly delivery plus regular regular shops at Asda, but after seeing how they treat their Staff I think I will take my custom elsewhere.
    Seems like Asda is creating a rod for it’s own back.

  5. NOTHING TO DO WITH BREXIT
    As usual, they say they LISTEN, but I beg to differ.
    Not enough colleagues = No stock on shelves, no-one to care for customers
    Forcing colleagues on a contract they didn’t want = Colleagues that will work to rule and not care
    Electronics checkouts = queues of customers that WILL go elsewhere to get the service they want, e.eg Morrison’s or Aldi.
    ASDA are losing the plot, race to the BOTTOM, I think you may win it!

LEAVE A REPLY

Please enter your comment!
Please enter your name here