Asda sees signs of recovery

'‹Asda '‹has reported a further fall in underlying sales, but there are signs that new boss Sean Clarke is overseeing a revival at the supermarket chain.
Asda is seeing signs of a recoveryAsda is seeing signs of a recovery
Asda is seeing signs of a recovery

Like-for-like sales fell 2.9 per cent in the three months to December 31, the tenth consecutive quarter of decline, but this was a considerable improvement on the 5.8 per cent ​fall in its third quarter to September 30.

​​Mr Clarke said: “We are encouraged by the early signs of our customers responding positively to the hard work that’s been happening in our stores throughout 2016, which saw us welcome over 140,000 customers back to Asda this last quarter.

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​"​We are putting customers first and have sharpened our prices, improved our ranges and availability, all with friendly service. While we have a lot to do, it is great to see our colleagues, who really make the difference, engaged in this change in doing what’s right for customers.”

Leeds-base​d​ Asda is owned by US retail giant Wal-Mart.

Wal​-M​art​'s CEO, Doug McMillon, said: “In the UK, we faced some challenges this past year and we’re addressing this with urgency. I’m glad comp store sales improved during the fourth quarter, but we have a lot of work to do.”

Walmart​'s CFO Brett Biggs, ​said: “Turning to the UK, net sales declined 0.6 per​ ​cent and comp sales declined 2.9 per​ ​cent in the quarter. We have a lot of work to do in this market, but we’re encouraged by some early signs of traction with improvements in the customer value proposition.”

Asda ​has had a tough time over the past few years.

​Its all time low was last August when it reported its worst ever fall in quarterly sales (down 7.5 per cent) ​as shoppers ditched its stores in favour of the discounters, underlining the mammoth task facing ​CEO Sean Clarke as he attempts to lure back shoppers.​

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Earlier this month the annual Which? survey placed it as the worst performing supermarket based on store experience.

​Asda came ninth in a poll that was topped by Waitrose, closely followed by Marks & Spencer.

Which? said that despite Asda being the cheapest supermarket for 11 months in 2016, it still came last.

"Being cheap isn’t enough to satisfy customers," the Which? report said.

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"Asda has failed to impress shoppers, coming last in the in-store survey and joint last for its online offering. It didn’t score well for store appearance or tidiness this year, and the hygiene of its delivery service came in for criticism for having dirty crates after a whistleblower raised concerns – something which Asda says it is now addressing.

"The quality of own-brand items and fresh produce isn’t quite good enough to write home about either, getting an average three stars.

"Having few substitutions (or sensible ones, at least) can tip the scales when it comes to the popularity of an online supermarket. Asda has failed in this sense, with one of the worst substitution ratings (sharing the bottom place with Sainsbury’s)."

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