Blackfriar: The new chief of Asda has some fresh food for thought

Of the three new British supermarket chief executives, Andy Clarke at Leeds-based Asda has the toughest job ahead of him.

Marc Bolland has left Bradford-based Morrisons in a healthy state for his successor Dalton Philips and Bolland himself inherits a resurgent Marks & Spencer.

Clarke, however, has a difficult road ahead of him.

On Tuesday, Asda announced a second successive fall in quarterly like-for-like sales. They fell by 0.4 per cent in the three months to June 30 following a 0.3 per cent slide in the first three months of the year – the first fall in four years.

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Clarke was quick to point out the group's biggest mistake – too much focus on the ubiquitous BOGOFs or Buy One Get One Free deals – happened under former management.

Critics might point out that Clarke was also part of the former management – he was chief operating officer before being elevated to chief executive in May – but we will let this pass.

Clarke argues that shoppers were confused by the myriad of promotions but now, under his new regime, the focus is on a clear transparent every day low pricing structure.

Clarke has reduced bulk buy promotions by a third.

"We won't yo-yo on price," he says. "I believe customers want a more transparent approach."

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So the price of four pints of milk has been cut from 1.53 to 1.25, a loaf of brown or white bread is down from 47p to 30p, bananas are down from 97p a kilo last month to 67p a kilo and a box of six Smart Price eggs has been chopped by nearly a third from 91p to 63p.

So why aren't shoppers rushing in to make the most of these bargains?

Personally speaking, Blackfriar would rather starve than eat a Smart Price egg that costs just 10.5p from hen to supermarket shelf.

But that could be put down to soft Southern notions about free range chickens being the only source of eggs in the Blackfriar household.

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But it's not just Blackfriar. If you have the time, try visiting some Internet noticeboards to see what Asda customers are saying about the produce.

It's not particularly complimentary.

The non-libellous comments include complaints about declining quality, meat that shrivels when cooked, sad-looking fruit and veg and the advice not to buy anything perishable.

Now talk to anyone at Asda and they will tell you Clarke is a smart cookie. He is the first to say that Asda needs to focus not just on the cheapest prices, but also on better quality food.

In a chat with Blackfriar earlier this week Clarke promised to unveil some "exciting and innovative" plans to improve the food business.

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He declined to give details, saying that all will be revealed on September 2. Blackfriar has an invite to the event and will report back.

This might all seem a little late (why didn't Asda pop down the road to Morrisons to see this was exactly what Marc Bolland has spent the past three years doing), but better late than never. The salient lesson is that everyone likes a bargain, but not if quality is the price of it.

One positive comment to come from the Internet noticeboards is that customers would go back to Asda like a shot if the quality of the food improved.

There is still a latent fondness for the group and its rich heritage.

Clarke has the right ideas and a chance to turn the Asda juggernaut around.

It is yet to be seen whether he can do it at a time of public spending cuts, rising taxes and job losses.

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