Member Article

Asda blames ‘most challenging period in history’ for sales dip as supermarket wars continue

Leeds-headquartered Asda has unveiled its full year financial results for 2014, posting a 1% fall in like-for-like sales for the year to 31st December.

For its 4th quarter a 2.6% fall in the 12 weeks to 4th January, in a quarter when the retail market as a whole slowed significantly.

President and CEO of Asda, Andy Clarke, warned that while the retail market remained ‘in one of its most challenging and changeable periods in history’, the Asda business was firmly focused on delivering its long term plan, including a £600 million investment plan in expanding and improving the Asda store estate.

At the same time as recognising the challenging market backdrop, the Asda CEO and CFO Alex has pointed out highlights such as a £300 million investment in lowering prices in 2014, £100 million more than planned as part of its five year pledge to invest over £1 billion in reducing the cost of living for its customers.

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 £600m 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.”

This was posted in Bdaily's Members' News section by Clare Burnett .