ASDA reports 4.5% drop in Q3 like-for-like sales

Supermarket Asda has seen like-for-like sales falling 4.5% in the three months to the end of September, its fifth quarter of falling revenue.

In the previous quarter, Asda's sales slumped 4.7%, marking its worst performance in its 50-year history.

It said sales volumes remained under pressure from discount supermarkets.

Meanwhile its US parent Walmart said net profit had fallen to $3.3bn for the three months to the end of October from $3.7bn a year earlier.

Its total revenues fell 1.3% in its third quarter to $117bn compared with $119bn a year earlier.

Asda chief executive Andy Clarke said the UK grocery market continued to be "challenging".
It is now the worst performing of the Big Four supermarkets.

But he added the supermarket chain had the "financial strength and clear plan to sustain us through this period, while we take appropriate and considered action to further strengthen our competitive position".

Sustainable growth

Walmart, once currency fluctuations were taken into account, reported stronger-than-expected third-quarter sales of $122bn, up 2.8% on a year earlier.

Revenues at Walmart's US stores were lifted by a 1.5% rise in sales at stores open more than a year.

However, international sales fell 11.4% in the period.

Doug McMillon, chief executive of Walmart, said: "We are pleased with the continued sales growth in Walmart US and in our international business. Although we still have work to do, we are positioning for sustainable growth through investments in people and technology to deliver a seamless shopping experience at scale."

The results come a month after Wal-Mart warned profits would be lower than forecast, because it was investing in e-commerce as well as increasing employees' wages.

The retailer's spending efforts are in part a reaction to slowing sales, as well as competition from online retailers like Amazon.

Source : BBC News
www.bbc.co.uk/news/business-34845780