Asda like-for-like sales jumped 9.6% in its second quarter as shoppers rushed to buy its low-priced Just Essentials range.
Across the quarter to 30 June, own brand sales surged 14.7% year on year with Just Essentials, the value range that Asda launched last May, soared 87% year on year.
The grocer said that more than 22m customers have bought an item from the since its launch in May 2022 and it is now it is now the “number one value range” with 20.2% market share.
Asda co-owner Mohsin Issa said: “We know that thousands of families continue to struggle with the cost of living, and we’re committed to doing all we can to support them.
“This quarter, we have locked the price of over 500 everyday items to help families keep a handle on their budgets, as well as reducing the price of over 200 own-label items by an average of 9% – including fresh fruit, vegetables, cupboard staples and ready meals.”
Asda said that its clothing and general merchandise businesses had both outperformed the wider market during the quarter.
Clothing notched up 2.8% like-for-like sales growth as George maintained strong full price sales.
General merchandise sales jumped 6.3% and the grocer highlighted the ‘Big Asda Toyshop’ offer, which delivered strong sales.
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Asda chief financial officer Michael Gleeson said: “The growth in like-for-like sales across the quarter reflects the strength of our customer proposition.
“Our focus on providing great quality and affordable food, stylish clothing and homewares from George, and the ability to shop when and how they like, is clearly resonating with our customers.
“Whilst we continue to see inflation headwinds in our cost base, wherever we are seeing reductions in commodity prices – such as wheat and milk – we are doing the right thing to pass those savings to our customers wherever we can, particularly in our own brand ranges.”
The grocer also said online continued to “perform strongly”. It delivered an average of 800k orders per week across the quarter and maintained its position as the UK’s second largest online supermarket.
Asda pushed ahead with the integration of 119 convenience stores it acquired from The Co-op. It also plans to complete its £2.27bn acquisition of parent company EG Group’s UK and Irish estate in the fourth quarter.
