British supermarket chain Asda has reported a 2.2% decline in total revenues, excluding fuel, to £5.3bn in the second quarter (Q2) of FY24.
The retailer’s like-for-like (LFL) sales declined by 5.3% over the quarter.
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Despite the dip, the supermarket chain achieved a 2% revenue growth, excluding fuel, in the first half (H1) of the year, although LFL sales saw a 2.1% decline.
The retailer’s online grocery sales increased by 1.4% in Q2 FY24, now representing 18% of Asda’s total food revenue.
Revenue of George’s online business also rose by 3.9% in Q2, reflecting customer appreciation for its fashion offerings and digital platform.
However, total George clothing sales saw a 3.9% LFL decrease, partly due to Asda’s strategic choice to limit promotional activities in the fashion sector.
Asda’s back-to-school (B2S) campaign saw store sales surge by 88% compared to last year in the first two weeks and a 13.5% sales increase by the end of Q2.
The campaign was enhanced by a four-day “early bird” promotion offering 20% off and significant investment in additional hours and training for store colleagues.
Asda co-owner Mohsin Issa said: “These results highlight a period of robust online performance and a record start to George’s back-to-school campaign. Despite a challenging retail environment, George.com sales rose by 3.9% and online grocery increased by 1.4%, underscoring our steadfast commitment to delivering quality and value to our customers. Asda Rewards continues to go from strength to strength and now accounts for 52% participation in all transactions.”
In the remaining period of the second half of 2024, Asda will concentrate on three strategic priorities: enhancing customer satisfaction, improving product availability and introducing a refreshed trading plan.
The supermarket plans to focus on 1,000 core grocery lines and invest an additional £30m in colleague hours to strengthen its customer proposition.
Asda will deliver a renewed trading plan for the remainder of the second half, with a focus on the increased use of the Asda Rewards loyalty app.
