Asda reports group sales growth in Q3

Asda today published its third quarter trading update for the 13 weeks to 30th September, reporting total revenue including fuel of £6.5bn, up 3.1% year-on-year, driven by growth across different parts of the group.

Q3 highlights:

• Group revenue including fuel increased 3.1% year-on-year to £6.5bn. Excluding fuel, revenue was £5.1bn, with like-for-like sales broadly flat at (0.1%).

• Food sales grew 0.1% as investment in price and availability continue to be felt.

• Online grocery sales grew 6.9% on a like-for-like basis, supported by strong participation in Asda Rewards, which is now linked to 74% of online orders.

Asda Express outperformed the wider convenience market, with like-for-like sales up 2.7% and plans to open 15 new stores next year.

Michael Gleeson, Asda’s Chief Financial Officer, said: “The work we’ve done through the period to deliver against our strategy was reflected in our third-quarter performance. Like-for-like food sales returned to growth in Q3, online sales grew strongly and group sales increased, despite the challenging economic backdrop.

“Asda’s key strength is the breadth of our business, spanning food, clothing, fuel, pharmacy and other services. This means we can meet more of our customers' everyday needs and gives us more opportunities to grow. Our disciplined approach to managing costs and cash means we can keep investing in value today and in sustainable growth in the long-term.”

Delivering value for customers

The squeeze on family budgets is increasing with the latest Asda Income Tracker showing spending power at a six-month low and the lowest-earning households, on average, £76 a week short of covering essential bills. To help, Asda has cut prices on more than 1,000 everyday products and guaranteed to hold these until Christmas.

Asda remains the lowest-priced full-range supermarket. It has won The Grocer 33 weekly price comparison nine times since July, and Which? named it cheapest supermarket for branded groceries in eight of the last nine months. Investment in store standards has also been recognised, with Asda winning The Grocer 33 mystery shopping award four times over the same period.