Asda like-for-like sales shot up 9.6% in the second quarter as shoppers snapped up its low-priced Just Essentials range.
Own brand sales surged 14.7% year on year in the quarter to 30 June. Sales of Just Essentials, Asda’s value range launched last year to help families shop on the tightest budgets, rocketed 87% year on year.
The retailer said it is now the “number one value range” with 20.2% market share and that more than 22m customers have bought Just Essentials items since its launch in May 2022.
Asda co-owner Mohsin Issa said: “We know that thousands of families continue to struggle with the cost of living, and we’re committed to doing all we can to support them.
“This quarter, we have locked the price of over 500 everyday items to help families keep a handle on their budgets, as well as reducing the price of over 200 own –label items by an average of 9% – including fresh fruit, vegetables, cupboard staples and ready meals.”
“In addition to investing in value on the shelf, we’re also the only major retailer to give money back to customers every time they shop through our Asda Rewards loyalty app. More than 5m customers regularly use the app and have earned over £200m since launch to spend in store or online.”
Asda said that its clothing and general merchandise business outperformed the wider market the quarter, with like-for-like sales growth of 2.8% and 6.3% respectively.
George maintained strong full price sales during the quarter and in general merchandise, it evolved its toy offer through the ‘Big Asda Toyshop’ offer, which delivered strong sales.
The grocer also said online continued to “perform strongly”. It delivered an average of 800k orders per week across the quarter and maintained its position as the UK’s second largest online supermarket.
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Asda chief financial officer Michael Gleeson said: “The growth in like-for-like sales across the quarter reflects the strength of our customer proposition.
“Our focus on providing great quality and affordable food, stylish clothing and homewares from George, and the ability to shop when and how they like, is clearly resonating with our customers.
“Whilst we continue to see inflation headwinds in our cost base, wherever we are seeing reductions in commodity prices – such as wheat and milk – we are doing the right thing to pass those savings to our customers wherever we can, particularly in our own brand ranges.”
Asda pushed ahead with the integration of 119 convenience stores it acquired from The Co-op. It also plans to complete its £2.3bn acquisition of parent company EG Group’s UK and Irish estate in the fourth quarter.
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