Asda saw sales rise in its first quarter results as it claimed its clothing business outperformed the fashion and homewares markets during the period.
The grocery giant’s total sales excluding fuel were up 6.6% to £5.3bn for the period ended 31 March, while like-for-like revenues nudged up 1.4%.
Grocery sales rose 1.3% on a like-for-like basis, which it attributed to its continued investment in enhancing the value and quality of its food offering.
The retailer’s fashion arm, George, increased its total clothing sales by 3% to £293m, as it said shoppers responded positively to its investment in price, style and quality credentials.
It added that online grocery continued to perform well, representing 18% of food sales, and driven by a 5.6% rise in the number of average weekly orders during the quarter.
Post-first quarter, the grocer refinanced more than £3bn of debt, which it insisted will strengthen its capital structure into the next decade.
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Asda co-owner Mohsin Issa said: “Asda made good progress against its strategy in the quarter, laying the foundations for long-term success – including completing the conversion of our newly acquired sites to Asda Express, as part of our strategic expansion into the growth markets of convenience and food-to-go.
“We did this while continuing to deliver great range, value and convenience, including investing in lower prices and the quality of our food and non-food at a time when the household budgets of our customers remain under pressure.”
He continued: “George at Asda again outperformed the value market in fashion and homewares, and it is very encouraging to see our investment in the brand bearing fruit both online and in stores.
“Customers also responded positively to our ongoing investment in the Asda Rewards loyalty scheme, which now has around six million regular users, and online grocery where we are firmly established as the number two player in the market.”
The update comes after Asda unveiled a new brand identity yesterday, which added dark green to its previous logo.
The grocer said the new branding was the result of extensive customer research and listening to understand how they see Asda, what they love, and how it needs to regain its relevance and individuality in the market.
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