Asda sees Christmas slump due to 'cautious' mindsets
A national supermarket chain has revealed that its sales fell over the Christmas period.
Asda, which has headquarters in Leeds, saw like-for-like sales fall by 1.3 per cent from 2018, mirroring drops from rival chains Morrisons, Tesco and Sainsbury’s.
The company identified the clothing market as being particularly challenging, attributing the drop in sales in that sector to uncertainty around the December General Election.
However, it reported that the food business proved more stable.
Chief executive of Asda, Roger Burnley, said: “We know that our customers’ mindsets during the quarter were cautious and whilst customers were enthusiastic for Christmas, they were more mindful in their spending – with many choosing to pare back gift lists and focus presents on kids rather than adults and extended family.
“We continued to improve our price position versus the previous quarter, and year on year, whilst our trusted combination of great value and quality ranges with a touch of Asda personality resonated strongly with customers.
“We’re ambitious to deliver even more for customers in 2020 and have entered the year with an even sharper focus on driving forward our strategy, which is anchored in saving our customers time as well as money.”
Earlier this year, the Competitions and Markets Authority blocked Asda’s proposed merger with Sainsbury’s.
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