Asda announces a £13 million investment in store hours for the festive season to combat declining sales.
- Third quarter sales excluding fuel dropped by 2.5% to £5.3 billion, with like-for-like sales down 4.8%.
- Customer perceptions of availability are improving both in-store and online.
- Asda focuses on enhancing the customer experience and investing in value through initiatives like the Rewards loyalty app.
- Asda’s transformation includes expanding its store footprint and launching a premium range.
Asda has decided to allocate an additional £13 million to store hours during the hectic festive season in response to a decline in third-quarter sales, which excluding fuel, fell by 2.5% to £5.3 billion. Like-for-like sales also decreased by 4.8%, although this represented an improvement over the previous quarter.
The company reports that customer perceptions of product availability have been improving in both physical stores and online. This enhancement is partly due to Asda’s ongoing initiatives to boost the customer experience and focus on value. These initiatives include the Rewards loyalty app, which now represents nearly 57% of all transactions and has attracted more than 6.8 million regular users since its launch.
Stuart Rose, Asda’s chairman, stated that the company has undergone significant changes over the past three years, including doubling its store presence and entering growth markets like convenience and food-to-go. These efforts have laid the groundwork for long-term growth, despite temporarily affecting customer experiences due to the scale of the changes.
To support its value proposition, Asda continues to expand its new premium line, the Exceptional range, which has seen a 98% increase in sales year-over-year with the introduction of over 400 new product lines in categories such as meat, fish, poultry, and bakery. This focus on quality and value has contributed to positive customer feedback and market performance.
Asda’s chief financial officer, Michael Gleeson, emphasized the steps taken to enhance store standards and provide a consistent shopping experience, indicating a strong market performance from their George fashion brand and encouraging customer reactions to the Exceptional line. These efforts illustrate the company’s determination to achieve sustained sales growth.
Asda is strategically investing to enhance customer experience during the festive season, aiming for long-term growth despite recent sales challenges.
