Supermarket Asda has reported its worst quarterly sales in over five years, in a slump that outstrips rivals Tesco, Sainsbury’s and Morrisons. The 3.9% fall in sales is the Walmart-owned grocer’s third successive quarterly fall. However, Asda’s CEO Andy Clarke said that its strategy to breakaway from the prices offered by its fellow ‘big four’ companies to compete with the likes of Aldi and Lidl was the right one.
Clarke commented: “This last quarter has been unprecedented. We have seen deflation in the market and exponential shifts in the industry. Although I still believe that 18 months ago we did a great job of predicting changes, we could not have foreseen what’s happened to others and the moves they have had to make in order to restore their business – creating an impact on us in the short-term.
“Whilst I take no pride in reporting a negative number, we are in a period of expected turbulence, not distress. We won’t buy short term sales at the expense of long term profitability. Throughout this period of change in our sector, Asda has been first to market with its response.
“Fundamentally, Asda remains a balanced, healthy sustainable business with a clear direction allowing us to hold our nerve and remain focussed on delivering for our customers.”
