Asda Continues to Experience Strong Growth

Date Published:15/05/2009

Supermarket giant Asda has posted an 8.9% rise in sales in the first three months of this year, in a clear sign that it is winning customers from rivals as cash-strapped shoppers seek to trade down.

As well as rolling back price on thousands of items, the retailer has also introduced several permanent low-price offers, such as 100 frozen products for £1 and three packs of fresh meat for £10.

Chief financial officer Judith McKenna said; "We have hit the sweet spot by finding the right balance between lowering prices, improving quality and reducing our costs. As a result we are winning even more customers and we're gaining them from all of our competitors."

Online sales also improved, up 50% compared with the same quarter last year, and the chain looks set to trial a home shopping store in Morley, Yorkshire, in the summer.