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Asda updates on Q2 trading and support for customers during the cost of living crisis

  • Q2 like-for-like sales decreased by 1.9% year-on-year, a significant improvement on Q1 2022
  • Investments in price and quality drive positive like for like sales growth at the end of Q2 and into Q3 
  • Asda continues to invest in helping families manage rising living costs - locking prices on a further 160 products for 2022 and serving 330,000 ‘Kids Eat for £1’ meals from its cafes
  • More than 2 million customers already using new ‘Asda Rewards’ loyalty app

August 25, 2022 11:00am
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PeriodRevenue (excl fuel)Like-for-Like sales (excl fuel)
Q2 2022£4.9bn(1.9%)

Asda has today updated investors on its Q2 2022 trading performance and the far-reaching steps it is taking to support customers during the current cost of living crisis.

The quarter, which covered the period from 1st April to 30th June, saw like for like sales (excluding fuel) fall by 1.9% year-on-year, however, comparatives with the previous year were impacted by the Covid restrictions in place during Q2 2021.

Asda’s performance in Q2 represents a significant improvement on the 9.2% decline in like for like sales during the previous quarter of this year. The supermarket delivered positive like for like sales towards the end of the quarter and 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.

With the latest Asda Income Tracker showing that households were on average £160 worse off in July compared to last year, the supermarket has stepped up its support for customers struggling with spiralling living costs.

During Q2 Asda accelerated rollout of its new budget friendly ‘Just Essentials’ range, which launched in May, and 220 products are now available in stores – including a greater 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 latest Kantar data (12-weeks ending 07/08/22).

In addition, Asda has expanded its ‘Dropped & Locked’ pricing campaign to include more than 250 family favourite products and will lock the prices of these for the rest of 2022 to give customers greater control over their shopping bills.

Asda has also confirmed that its ‘Kids Eat for £1’ offer currently running in all cafes during the school holidays has been extended for the rest of this year. The initiative was launched to help parents tackle holiday hunger at a time when family budgets are squeezed by rising living costs and has been hugely popular with more than 330,000 meals served since the offer began in late June.

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.”

Earlier this month, the supermarket rolled out its new ‘Asda Rewards’ loyalty app to all stores and online. The app, which gives customers pounds off at the checkout rather than points, was launched following a series of successful regional trials. More than two million customers have already downloaded the app and accumulated £7m in their cash pots, which they can spend at Asda.

Mohsin Issa, Asda’s Co-owner, said: “We want to do everything we can to help our loyal customers manage their budgets – and Asda Rewards allows them to save real cash, just by shopping with us. After a series of successful regional trials, we are delighted to have expanded Asda Rewards to all our stores – meaning customers across the UK can now start building their cash pot. Over two million customers have already downloaded the app with many already starting to see the benefit during these very challenging times.”

During Q2, Asda welcomed Ken Towle and Kris Comerford to its Leadership as Retail Director and Chief Commercial Officer for Food. Asda also confirmed that Michael Gleeson will join the supermarket next year as Chief Financial Officer.

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