Walmart owned English supermarket chain Asda suffers its worst ever quarterly sales slump. The UK supermarket chain recorded sixth successive profit slide after losing to German discounters in the grocery price war during the Christams sales. Sales at established stores plummeted 5.8% in the 13 weeks to 1 January, contrasted to a 4.5% fall in the previous quarter and a 4.7% slide before that.
The third largest supermarket in UK, Asda now reports its worst performance in its fifty year history. Andy Clarke, the chief executive of the supermarket chain said the company was in no crisis. Clarke, who previously described the 4.7% sales slide as a “nadir” for Asda, admitted that the grocer’s sales performance had been worse than anticipated.
Even though Asda recorded its worst Christmas sale, the company still claims to meet its strategic objectives in reducing discounting, keeping profits stable and selling out its seasonal products. Asda in a move to counter the falling sales have announced huge price cuts and discounts. Asda has announced that it would cut the price of 1600 basic need products to win back the shoppers it lost to the discounters.
Clarke added: “Short-term tactics taken by some businesses are going to tempt some shoppers to take advantage of those [offers] but we have got a long term sustainable strategy of investing in price and executing [improvements in stores].”