Asda sales fall 9.2% in first quarter

Asda has reported a near double-digit fall in first quarter sales.

The supermarket giant said the figures reflected comparison with exceptionally strong trading in the same quarter last year when the UK was in a Covid-19 lockdown.

Asda said first quarter to March 31 like-for-like sales, excluding fuel, fell 9.2% year-on-year, having fallen 2.9% in the fourth quarter of the previous year. Total revenue, excluding fuel, came to £4.64 billion.

The lockdown in the first quarter last year meant more meals were consumed at home and more clothes and general merchandise were purchased in supermarkets as non-essential shops were closed.

Sales in the quarter last year also benefited from the earlier timing of the Easter holiday.

Asda, which trails UK market leader Tesco and Sainsbury’s in annual sales, has been owned since last year by brothers Mohsin and Zuber Issa and private equity company TDR Capital.

Last month Tesco and Sainsbury’s both warned of lower profit this year, amid a worsening cost of living crisis.

Monthly industry sales data has shown Asda underperforming its bigger rivals.

Asda said it has invested over £90m in a new “Just Essentials” value range and in cutting the prices of 100 key products.

The group has been without a CEO since Roger Burnley abruptly left the group in August. In November, new chairman Stuart Rose said appointing one was a priority.

Asda said former Tesco executive Ken Towle had joined the business as retail director.