British supermarket Asda Q4 sales deteriorate further

LONDON, Feb 18 (Reuters) - Supermarket chain Asda, the British arm of Wal-Mart, reported a 5.8 percent decline in underlying sales on Thursday in a further deterioration of its performance as it continues to lose shoppers to German discounters Aldi and Lidl.

Asda's sixth straight quarter of decline follows a drop of 4.5 percent in the third querter and 4.7 percent in the second, which Chief Executive Andy Clarke had said was the company's "nadir".

The 5.8 percent fall in the 13 weeks to Jan. 1, Asda's financial fourth quarter, cemented its position as the worst performer in revenue terms among Britain's four biggest supermarket chains.

Asda's strategy in an environment where all Britain's supermarket companies are facing tough trading conditions because of industry deflation has been to protect profit margins rather than chase unprofitable sales.

It said profitability in the quarter was stable. (Reporting by James Davey; Writing by Sarah Young; Editing by David Goodman)