Asda has reported a 1.9% drop in like-for-like sales to £4.9 billion in Q2 2022.
In the quarter from 1 April to 30 June, the Big 4 grocer saw a significant improvement on the 9.2% decline decline in like for like sales during the previous quarter of this year.
This comes as UK households were on average £160 worse off last month, according to Asda’s latest Income Tracker
Bosses at the supermarket giant claim they would keep “keep grocery bills in check” as more customers continue to struggle with the ongoing cost-of-living crisis.
However, the retailer claims it benefited from strong sales of its new Just Essentials value range, having accelerated its launch of the range in response to rising pressures on household finances.
Asda said its sales improved in into the third quarter, which it have driven by strong sales in core categories such as meat, fish and poultry.
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The grocer also increased investment in pricing by expanding its Dropped & Locked campaign, where it froze the prices of over 250 products until the end of the year.
According to the retailer, its ‘Just Essentials’ has proved to be “very popular” with customers amid the cost of living crisis, with one in three regularly shopping the range, resulting in growth of 19% ahead of the market, according to the latest Kantar data.
“Every week millions of customers visit our stores or shop with us online and we know many of them are struggling with rising living costs that show no sign of easing,” Asda co-owner Mohsin Issa said.
“We are determined to do all we can to support these customers during these tough times by keeping their grocery bills in check while delivering added value through initiatives such as Dropped & Locked and the Kids Eat for £1 offer in Asda cafes.”
Issa added: “After a series of successful regional trials, we are delighted to have expanded Asda Rewards to all our stores – meaning customers across the UK can now start building their cash pot.
“Over two million customers have already downloaded the app, with many already starting to see the benefit during these very challenging times.”
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