Asda has this week completed the rollout of Project Future, its IT programme separating it from its former owner Walmart, with all stores, food depots and head offices now operating on the new, Asda-owned systems.
However, in the company’s Q2 trading update, executive chairman Allan Leighton admitted it had impacted both online delivery and availability. “The collective rate of completion did cause some temporary disruption with product availability and in our online experience, which will impact our sales outturn in the current quarter,” he said.
Leighton said that overall product availability had improved to an eight-year high of 96%. This helped to drive Asda’s fourth consecutive quarter of improved like-for-like sales, with Q2 sales to the end of June lower by 0.2% – a 2.9% improvement on Q1 and the company’s best quarterly performance since Q1 2024.
Asda Express rollout
The company’s convenience offer Asda Express performed particularly well, delivering 8.6% like-for-like growth in the period. Asda has announced the opening of up to 20 new standalone Express stores between October and November.
Price is also a key focus for Asda as it seeks to help customers cope with soaring food inflation. More than 50% of products, or 14,000 SKUs, have either already been reduced or are currently being reduced through the Rollback cycle before moving to a new, permanently low Asda price. Overall, Asda company has cut prices by an average 22%.
Ten new stores for George concept
Asda’s fashion offer also saw strong growth of 2.5% in like-for-like sales during the quarter. The company launched a standalone George concept store at Crown Point in Leeds in May and now plans to rollout a further 10 stores across the UK next year.
Asda is also refurbishing 180 instore cafes with work to be completed in October. The revamp includes the introduction of digital ordering and refreshed interiors and menus.
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