Asda Sales Slump To Record Low At Struggling Supermarket

Sales at supermarket chain Asda have plunged 7.5% as the company reported its worst ever quarterly performance.

It is the eighth consecutive quarterly fall for the struggling supermarket, which is owned by Walmart, and worse than the 5.7% drop for the three months to 30 March.

During the quarter, like-for-like sales, excluding fuel, decreased by 7.5%.

The figures highlight the challenge facing Asda's new CEO Sean Clarke, who took over the role last month, and is tasked with an ambitious strategy to turn the company around with a £1.5bn price investment plan over the next five years.

The plan is to revive the supermarket through an assortment of measures including improved ranges, reduced prices and job cuts.

Doug McMillon, Walmart CEO, said: "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.

"We are simplifying and strengthening our offering through improved availability and assortment discipline, reducing costs and driving sales through strategic price investments," he added.

The "big four" supermarkets in the UK have come under increasing pressure from the expansion and popularity of German discount rivals Aldi and Lidl which are continuing to increase their market share.

Supermarket price wars and an environment of falling food prices have added to Asda's challenges in the UK market, but Walmart CFO Brett Biggs remains confident.

He said: "Our strategy remains focused on improving retail basics; simplifying and strengthening the offer through improved availability and assortment discipline, reducing costs through our cost analytics program and driving sales through strategic price investments."

Despite Asda's woes in the UK, Walmart said like-for-like sales at its US stores rose a better-than-expected 1.6%, excluding fuel.