19th Feb 2015 13:21
LONDON (Alliance News) - British-based, US-owned supermarket chain Asda Stores Ltd Thursday posted a 2.6% fall in like-for-like sales in the 12 weeks to January 4 and announced a GBP600 million investment in its UK store portfolio.
Wal-Mart Stores Inc-owned Asda, the UK's second biggest supermarket chain said like-for-like sales declined 1% for the year to end-December, citing a slowing of the retail market as a whole.
Speaking at an event in London Thursday, Asda Chief Executive Andy Clarke warned that while the retail market remained "in one of its most challenging and changeable periods in history", Asda was focused on long-term growth, including a GBP600 million investment plan in expanding and improving its UK store estate in 2015.
"2014 saw an acceleration in the structural shift in the market, and whilst we saw it brewing and put the right plan in place to address it - delivering solid wins for our business and keeping the ship steady in a turbulent market, the pace and scale of change has exceeded all expectations," said Clarke.
Clarke said Asda will invest in 17 new store openings this year, including three supermarkets in London. It said 62 of its stores will undergo a "major remodel" to reflect changing shopper habits.
Earlier this month, the latest industry data from Kantar Worldpanel suggested that German discounters Aldi and Lidl are still gaining market share from the UK's four big supermarket chains, but Tesco PLC and Wm Morrison Supermarkets PLC have both managed to stem market share loss and falling sales, delivering their best performance in over a year, while J Sainsbury PLC and Asda are losing more ground.
The big four grocers again saw a decline in their share of the UK grocery market over the 12 weeks to February 1, when compared to a year earlier, the Kantar data showed. Asda's share fell to 16.9% from 17.3%, as sales fell the most out of the 'Big Four', by 1.7%.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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