Asda’s new management team will continue to focus on the customer offer, both online and off, after like-for-like sales fell by 7.5% compared to the same time last year in the second quarter of the year.
The supermarket, a Top50 retailer in IRUK Top500 research, will continue to focus on improving retail basics through its Project Renewal transformation plan. That will include strengthening the customer offer online and offline by lowering prices and boosting quality, said its parent company Walmart.
Walmart chief financial officer Brett Biggs said fierce competition and food deflation were taking a toll on traffic and like-for-like sales, with prices being hit by ‘hard’ discounters. “Our strategy remains focused on improving retail basics; simplifying and strengthening the offer through improved availability and assortment discipline, reducing costs through our cost analytics programme and driving sales through strategic price investments, where we remain committed to the previously-announced five-year £1.5bn price investment,” he said.
Earlier this year Asda moved to cut jobs in the light of a “generational shift” away from stores and towards online. Asda is three years into its Project Renewal programme, a transformation plan designed to reshape its stores and online service around the way that shoppers want to buy. That has meant more click and collect points, and a review of the range.
Today Walmart chief executive Doug McMillon told investors: “In the UK, the competitive environment and food deflation continued to challenge the market, significantly impacting traffic and comp sales. Our strategy to turn things around is focused on improving the retail basics. We are simplifying and strengthening our offering through improved availability and assortment discipline, reducing costs and driving sales through strategic price investments. While our turnaround will take time, I’m confident in the new leadership team there and want to assure you we’re addressing this with urgency.”
