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Asda posts first trading growth in more than two years
Sales at Asda’s established stores excluding fuel rose 0.2% in the seven weeks to 18 August, after a 2.3% decline over the prior three months.
Asda has reported its first trading growth in more than two years, with executive chair Allan Leighton attributing the turnaround to lower prices and improvements to its online service, according to the Guardian Business.
Leighton said sales at established stores, excluding fuel, increased 0.2% in the seven weeks to 18 August, which he called a “huge milestone” and “psychologically important” for the business. He also pointed to momentum online, noting that prior performance had been held back by issues with its service.
The retailer had seen sales fall 2.3% in the preceding three months, and growth during the seven-week period was led by food, with food sales up 0.7% at established stores.
The Guardian Business also said Asda has struggled since its 2020 buyout, which involved Issa brothers and private equity firm TDR Capital in a £6.8bn takeover, with the company facing falling sales and profits as well as a large debt burden and close to £1bn spent on revamping its IT systems. Leighton said Asda’s improvement has been aided by greater stability in those IT systems following a costly transition away from the technology of its former owner Walmart.