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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 (£2.1bn). | Walmart also reported falling profits. Net income for the first quarter fell 7.8% to $3.08bn (£2.1bn). |
| "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. | 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. | 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. | 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. | It is also in the middle of a programme to overhaul its product range, modernise its 95 largest stores, and reduce costs. |
| Duygu Hardman, an analyst at Verdict Retail, said that Asda needed to compete in terms of quality as well as price. | |
| "While Asda has traditionally attributed its suffering market position among the Big Four to the short-term tactics of its competitors, this is no longer the case with the focus shifting to value rather than price," she said. | |
| "Asda needs to achieve the right balance of price, quality and service if it wants to better address the fast-changing needs of its customers". | |
| Walmart sales boost | Walmart sales boost |
| Parent company Walmart reported a profit for the quarter of $3.1bn, a decline of 7.8% from the previous year. | Parent company Walmart reported a profit for the quarter of $3.1bn, a decline of 7.8% from the previous year. |
| Despite the fall in profits, Walmart's results were better than analysts had predicted. Shares in the company rose more than 9% in trading in the US. | |
| In addition, the US retail giant said like-for-like sales rose 1% in the quarter which ended on 29 April, and that it had seen more customer visits. | In addition, the US retail giant said like-for-like sales rose 1% in the quarter which ended on 29 April, and that it had seen more customer visits. |
| "Overall a pretty strong quarter," said Mr Biggs. "We are very pleased with the traffic increases, and I think that goes along with what we are seeing with customer experience scores that continue to improve." | "Overall a pretty strong quarter," said Mr Biggs. "We are very pleased with the traffic increases, and I think that goes along with what we are seeing with customer experience scores that continue to improve." |