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| Asda sales slump continues amid 'fierce competition' | Asda sales slump continues amid 'fierce competition' |
| (35 minutes later) | |
| Supermarket Asda has reported a 5.7% fall in like-for-like sales during the first quarter of the year after facing "fierce competition". | Supermarket Asda has reported a 5.7% fall in like-for-like sales during the first quarter of the year after facing "fierce competition". |
| It follows a 5.8% slump sales during the previous quarter, which was Asda's biggest sales fall on record. | It follows a 5.8% slump sales during the previous quarter, which was Asda's biggest sales fall on record. |
| The chain, which is owned by US retailing giant Walmart, said UK sales "continue to struggle". | The chain, which is owned by US retailing giant Walmart, said UK sales "continue to struggle". |
| Walmart also reported falling profits. Net income for the first quarter fell 7.8% to $3.08bn. | Walmart also reported falling profits. Net income for the first quarter fell 7.8% to $3.08bn. |
| "The UK continues to struggle, due primarily to fierce competition," said Walmart's chief financial officer Brett Biggs. | "The UK continues to struggle, due primarily to fierce competition," said Walmart's chief financial officer Brett Biggs. |
| "Improvements in price and product availability throughout the quarter were not enough to overcome traffic and food volume declines in our large format stores." | "Improvements in price and product availability throughout the quarter were not enough to overcome traffic and food volume declines in our large format stores." |
| According to the consumer research firm Kantar Worldpanel, Asda lags behind Tesco and Sainsbury's in terms of "big four" supermarket sales. | |
| But each of the four major UK supermarket chains, which also includes Morrisons, have been engaged in a long-running and bitter price war as part of an attempt to slow gains in market share by discounters such as Aldi and Lidl. | |
| Asda is attempting to recoup sales by cutting prices to narrow the gap with the discounters and widen its price advantage over its three biggest rivals. | |
| It is also in the middle of a programme to overhaul its product range, modernise its 95 largest stores, and reduce costs. |