Asda has returned to sales growth for the first time this year, posting its strongest quarterly performance since Q1 2021 as its focus on value attracted 400,000 new shoppers from other supermarkets.
The supermarket giant revealed that like-for-like sales rose 4.7% for the three-month period to the end of September (Q3 2022) as it continues to step up its commitment to supporting families during the cost-of-living crisis.
Total revenues (excluding fuel) were £5.2 bn.
Asda attributed the return to growth to its budget-friendly Just Essentials value offer, revealing that around 70% spend on the range is from new customers who have made the switch from “more expensive supermarkets”. Over 140 new value products were added to the range over the quarter, taking the total number of products available in the range to 270.
The grocer is also continuing to keep prices low across 250 staple products until the end of 2022 with its ‘Dropped & Locked’ price freeze initiative.
Asda’s co-owner Mohsin Issa said: “The financial pressures on families across the UK is worsening and they are looking to us for help. Asda has a long-standing reputation for providing customers with outstanding value and it’s more important than ever that we deliver on this for them.
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“We’re absolutely committed to ensuring that Asda remains the best value traditional supermarket – while introducing new value initiatives such as Asda Rewards that can make an immediate difference to customer budgets.”
The new Asda Rewards loyalty programme, which rewards customers with money off their shopping rather than points, was also rolled out to all stores and online during the quarter. It currently has 2.7m active users.
A number of new initiatives providing additional support within the community have also been successful, with over one million ‘Kids eat for £1’ meals expected to be served in the supermarket’s cafes by the end of this year. The new Winter Warmers offer for the over 60s is predicted to have a similar impact.
The quarter also saw the grocer stepping up its plans to enter the convenience market, as it finalised a £600 million deal to buy the Co-op’s petrol forecourt business while also revealing its new standalone convenience offering under the new ‘Asda Express’ brand.
The first Asda Express store opened in Sutton Coldfield last week, with two more scheduled to open in 2022 and 30 more planned for key residential locations next year.
“Although we have more the 600 stores across the UK, there are still many communities that don’t have an Asda nearby,” added Mohsin Issa.
“We want to change this and bring Asda’s great products and value to even more people through these new stores.”
With just over six weeks to Christmas day, the supermarket has boosted its online delivery capacity with more than one million home delivery and click and collect slots available the week before Christmas. It will also be recruiting up to 6,000 temporary colleagues throughout the busy festive period.
