- Asda Q2 sales rose 0.5% excluding fuel and 2% including fuel in the 10 weeks to June 30 which it attributed to it “clear and consistent” Everyday Low Pricing (EDLP) strategy. This positive growth is in stark contrast to rivals Tesco, Sainsbury’s and Morrison’s who continue to see their market share fall due to discounters.
- It’s operating margin increased by 140BP in Q2 and its IPL sourcing of fresh produced delivered a saving of 20% which it could pass onto consumers.
- A new ambient DC was opened in Erith to serve its stores more efficient in London and the South East. An George DC in Lynesdale was automated to help it reduce the time it takes to service stores.
- Asda’s share of the online grocery market stands at 18.4% with online sales increasing 20% in Q2.
- Its click and collect proposition now accounts for 10% of sales and has over 20,000 users a week just for grocery sales. It expects click and collect to account for 30% of online sales in the next five years.
- The introduction of extended click and collect opening by four hours, after the stores close on Sunday has led to an 20% uplift in sales. Sameday click and collect will also be offered on George Schoolwear in over 180 stores, a first for a UK clothing retailer.
- Asda’s fashion label George is now the second largest clothing retailer by volume in the UK. The George Home range which was recently relaunched also experience double digit growth.
- Asda will remodel 86 stores in 2015 and is developing three new large format stores in Q4 2014. Some stores will also have Barclays bank branches and Subway restaurants added in order to give customers new reasons to visit.
Asda has shown that despite difficult market conditions that through its own EDLP strategy it can continue to gain market share both on and offline. It will be interesting to assess how its new store models and convenience operation will roll out next year.