Asda sales slump hits new low in second quarter

LONDON, Aug 18 (Reuters) - Supermarket chain Asda, the British arm of Wal-Mart, reported its worst-ever quarter of declining underlying sales on Thursday, blaming fierce competition and food deflation.

Asda, which replaced its chief executive last month, said sales at stores open over a year, excluding fuel, fell 7.5 percent in the three months to June 30, its fiscal second quarter.

That compares with a 5.7 percent fall in its first quarter and was an eighth consecutive quarter of decline.

"While our turnaround will take time, I'm confident in the new leadership team there and want to assure you we're addressing this with urgency," said Wal-Mart CEO Doug McMillon. (Reporting by James Davey, Editing by Paul Sandle)