Asda endures major slump in latest results

The merger of Asda and EG Group could create a retail giant worth between 11 billion and 13 billion pounds, according to a report in the London-based The Times

UK retailer Asda has posted its worst quarterly results in 50 years as the slump in UK retailing continues

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Asda, a division of US giant Walmart, has published its quarterly financial results, revealing a tough 4.7% drop in like-for-like sales up to 30th June. This represents the steepest fall for the UK retailer in its 50-year history. The last quarter saw sales fall by 3.9%, also the biggest drop in decades.

Andy Clarke, Asda’s CEO called the numbers disappointing, but also a “short-term picture.

“We continue to navigate a steady course through the worst storm in retail’s history,” he said. “2015 was predicted to be a volatile year, so I didn’t expect a positive sales figure. But I’m not distracted by the short-term picture. We have an enviably stable business with balanced books and the right strategy to return us to sales growth.”

Clarke went on to highlight Asda’s existing five-year plan to return to the retailer to profitability over five years, including improving the core business, extending Asda’s reach and expanding the brand in to new markets. This recently manifested itself in Asda’s “Save Money. Live Better” initiative, while Clarke added that the company is currently completing a new research project investigating buying decisions. “It is prudent to look at the ever-changing habits of today’s shoppers,” he said, “and we won’t get sidetracked by short-term fixes that are saturating the supermarket industry.”

He also announced a £1n investment in lowering prices and £250m in a plan to revamp Asda’s 568 locations across the UK.

Read More: Asda Walmart

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