Asda releases Q3 financial results with increased focus on innovation

Today, Walmart has published its earnings for the third quarter of 2019 including financial results for its UK business, Asda, for the period 1st July to 30th September 2019.

Over the third quarter of 2019, the supermarket posted a 0.5% decline in like-for-like sales excluding petrol. Online grocery sales during the same period remained strong with continued growth ahead of the market.

Speaking on the Walmart earnings call, Walmart CEO Doug McMillon commented on the UK market: “In the U.K., concerns over Brexit continue to negatively affect customer spending patterns… comp sales declined 50 basis points during the quarter but improved sequentially compared with the Easter-adjusted comp from the second quarter… online grocery sales continue to be strong with growth ahead of the market according to Kantar… roughly two times the growth of the overall market.”

Walmart CFO Brett Biggs added: “We’re continuing to manage through political and/or economic challenges that are affecting growth in several of our International markets, including the U.K. and Central America, which both had negative comps in the quarter. But overall, our operating fundamentals are improving.

*“*In the U.K., comp sales declined 0.5 percent as customers’ concerns over Brexit continue to weigh on results. Despite this challenging environment, the Asda team continues to drive operational and service improvements that are resonating with customers, including strong growth in online grocery.”

Asda CEO and PresidentRoger Burnleycommented:“This quarter has afforded consumers little respite from political or economic uncertainty and this has shown in their spending. However, we have remained focussed on doing the right things for our customers. We continue to work hard to keep prices low for our customers as well as driving quality and improving our shopping experience. Our core online business has continued to outpace the market, achieving double-digit growth and customers responding well to developments to the service including our award winning ‘shop by recipe’ feature. We have also invested in improving 15 stores this quarter, which has resulted in an improved overall customer experience.

“We have maintained our focus on innovating where customers care – a mantra that extends beyond technology, but also into the way we respond to the demands of our communities, both local and global. This quarter has seen us step on even further with our commitments to reducing the amount of plastic used across our business including moving our entire range of own-brand ready meals to recyclable packaging, removing plastic pots from our fresh growing herbs and introducing reusable fruit and veg bags. We have also continued to step on delivery of our Creating Change for Better strategy and completed the rollout of our back of store food donations programme to all of our superstores and supercentres, along with reaching the milestone of having donated over 1 million meals to local charities.

“I am absolutely committed to securing the future of our business for the benefit of our colleagues, our customers and our communities – whatever external challenges we may face. As we enter the busiest trading period of the year, I am confident that we are ready and raring to go and I would like to take this opportunity to say thank you to every one of our colleagues, who I know will pull out all the stops to make this Christmas extra special for our customers. Whilst the retail sector continues to face challenges as a whole, I know that Asda is built on strong foundations and is at its best when we are able to work as one team, delivering for our customers.”