Struggling retail giant Asda has recorded its worst sales in its 50 years of operation.
It was the worst performance of the UK’s ‘big four’ who have all taken a hit from changing consumer preferences and the fierce price wars initiated to grab customers back from Aldi and Lidl which are said to offer goods at considerably less than Asda.
But it is proving an up-hill struggle as big out-of-town supermarkets have fallen out of favour and the vast majority of Aldi’s outlets are so located. Somewhat late in the day it is trying to catch up by opening shops in the 15 petrol stations it bought last year, with 100 scheduled over the coming five years.
Sales fell nearly 5% during the April to June quarter.
Its head, Andy Clarke, said the company had “certainly hit our nadir”, but time will tell. He expressed confidence that the supermarket is on an upward trend, citing the prophetic “positive green shoots”.
He admitted that the retailer had to improve its online services as well as the quality of fresh food, on which it will spend more during the rest of the year.
Asda had been Britain’s second-largest grocer, but was eclipsed by Sainsbury’s.
Clarke said Asda was backed fully by its US parent company, Walmart.
