Asda faced a 3.4 per cent decrease in like-for-like clothing and general merchandise sales during Q3 2023. The decline in clothing and general merchandise was attributed to unseasonal weather conditions affecting the sale of seasonal ranges.
However, the UK’s third largest supermarket chain reported £ 5.4 billion (US $ 6.7 billion) in revenues and a 2.8 per cent rise in like-for-like sales compared to the previous year’s Q3.
Asda highlighted successful segments such as Back to School in the George range, showing a 9 per cent increase in sales year-on-year for school clothing.
Asda’s Co-owner, Mohsin Issa, said, “Throughout the quarter we have been focussed on helping customers save money whenever they shop with us, and this remains our key focus. This means keeping prices low on the products they buy the most, putting money back in their pockets via the Asda Rewards app and passing on savings whenever there is an opportunity to do so.”
Michael Gleeson, Asda’s chief financial officer, stated, “Asda has a sustainable capital structure, strong cash generation and clear strategy to deleverage over time, as the early repayment of the loan facility used to acquire the Co-op business demonstrates.”
