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Asda reports 1.9% sales decline in Q2 2022

Image courtesy of Asda

Asda reports year-on-year sales down 1.9% for the second quarter of its financial year. Sales for the period 1 April to 30 June reached £4.9bn, excluding fuel sales.

Q2 sales are a “significant increase” over Asda’s Q1 figures. During the first three months of year, the grocer saw like-for-like sales decline 9.2% against the previous year. Covid-19 was still impacting retail sales in the January to June 2021 period meaning comparisons against this exceptional time, especially for the grocery sector, is not as straightforward as usual.

Asda reports that sales towards the end of Q2 were stronger than at the start, with positive like-for-like sales. This growth trajectory has continued into Q3, driven by its continued investment in price and quality in core categories, including produce, meat, fish, and poultry.

Consumers are £160 worse off than last year

Asda’s latest Income Tracker shows that households were on average £160 worse off in July compared to last year. The grocer is keen to share how it is investing to help families manage these rising living costs. Prices will remain static throughout 2022 on 250 products and its ‘Kids Eat for £1’ promotion has seen 330,000 meals served at in-store cafes this summer. The promotion is being extended beyond the school summer holidays and will remain in place for the rest of the year.

During Q2 Asda accelerated rollout of its new budget friendly ‘Just Essentials’ range, which launched in May. It comprises 220 products including a selection of fruit, vegetables, fresh meat, fish, and poultry products. Just Essentials has proved very popular with value-conscious customers, with one in three regularly shopping the range, resulting in growth of 19% ahead of the market, according to the data from Kantar data for the 12 weeks to 7August.

Mohsin Issa, Asda’s Co-owner, said: “Every week millions of customers visit our stores or shop with us online and we know many of them are struggling with rising living costs that show no sign of easing. We are determined to do all we can to support these customers during these tough times by keeping their grocery bills in check while delivering added value through initiatives such as Dropped & Locked and the Kids Eat for £1 offer in Asda cafes.”

The news comes soon after Asda announced that its Asda Rewards app had been rolled out nationwide. It is already being used by more than two million customers who together have accumulated £7m in their cash pots, which they can spend at Asda.

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