Asda’s full year like-for-like sales slip by 1%
Asda said its like-for-like sales fell by 1% in the year to 31 December and by 2.6% in its fourth quarter ending 4 January.
Speaking at an event in London, Asda president and chief executive Andy Clarke said the retail market remained “in one of its most challenging and changeable periods in history”, adding that the supermarket was focused on its long term plan which included a £600 million investment in expanding and improving the store estate.
Chief financial officer Alex Russo explained how Asda had invested £300 million in lowering prices in 2014, £100 million more than planned. It also opened 17 new stores, unveiled its new format proposition at its Grantham superstores, and announced eight further ‘store of the future’ remodels for 2015.
In addition, Asda invested in its Click and Collect operations by opening 200 new Click and Collect sites and more than doubling the number of Click and Collect points in London Underground stations. There are also plans to launch the supermarket’s first stand-alone temperature controlled Click and Collect pods in the second quarter of 2015 on a major commuter belt between Manchester and Liverpool in St Helen’s.
Clarke said: “2014 saw an acceleration in the structural shift in the market and whilst we saw it brewing and put the right plan in place to address it – delivering solid wins for our business and keeping the ship steady in a turbulent market, the pace and scale of change has exceeded all expectations.
“The first year of our plan was very much about building the foundations –a work out to limber us up for what is to come in 2015 – by leading the price agenda in a deflationary market. We have a clear plan for sustainable, profitable growth and creates a proposition that gives customers what they want.
“I’m pleased that we can announce our continued investment in the UK with £600 million for new and improved stores in 2015. With such a powerful force like Walmart behind us that fully supports our strategy, we’re in a unique position in a difficult market – a position of great strength.”
Clarke explained that Asda will open 17 new stores in 2015 including three supermarkets in London. Some 62 stores will undergo a major remodel to reflect changing shopper habits and more than 150 new remote Click and Collect sites will be created.
Reiterating Asda’s strong relationship with parent company Walmart, Clarke highlighted recent investments by the retailer in its UK teams. In what Clarke called “a massive recognition of the contribution, knowledge and experience that sit in our teams in the UK”, he said Walmart has asked Asda to pull together teams that will support growth in sourcing and online grocery shopping across its international markets.
This will see International Procurement Limited, a wholly owned subsidiary of Asda, working closely with Asda’s online grocery team across several markets to share expertise and innovation. This follows the launch of one of three “mission control” Network Operation Centres at Asda’s head office in Leeds to support Walmart’s web operation 24-7 across the globe.
