Asda’s sales dipped in its second quarter, as it set out plans to deliver an “enhanced and more consistent in-store experience” for shoppers over the remainder of the year.
Total sales excluding fuel dropped 2.2% for the three months ended 30 June, with like-for-like sales declining 5.3%, as the grocery giant pushed ahead with what it termed its “unprecedented transformation”, the largest in its history.
The retailer plans to improve shopper experience by investing £50m into store upgrades, which it kicked off at the end of May.
It has already started to refresh 130 of 170 stores earmarked for investment.
Asda will focus on three key priorities: customer satisfaction, enhanced product availability, and a renewed trading plan.
It plans to boost availability in stores, including on 1,000 core grocery lines, and will make replenishment processes easier, allowing more deliveries to be put straight onto shelf.
The supermarket is also investing an additional £30m in staff hours to improve stock replenishment during opening hours in store, increase the number of staff on checkouts at the weekend, and ensure stores are clean.
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A renewed trading plan for the remainder of the year will look to drive increased use of its Asda Rewards loyalty app, which just two years after launch, make up 52% of all transactions.
Asda chief financial officer Michael Gleeson said: “We have made great progress over the last few years in transforming Asda into a diversified retail group, much of which is almost complete.
“However, we also know that there are some areas where we can and need to improve.”
“We have today set out clear and decisive action to deliver a more consistent customer experience – to match the uncompromising value we offer.
“We remain confident in the underlying strength of the Asda business as we execute our long-term growth strategy.”
Over the second quarter, Asda’s online sales improved, with George.com revenues rising almost 4% and online grocery up 1.4%.
It also had its best ever start to a George back-to-school campaign, with store sales up 88% from last year in the first two weeks of the campaign.
Asda co-owner Mohsin Issa said: “As we move forward, we remain committed to maintaining our value credentials, enhancing the product offer, and executing our long-term growth strategy to build an even stronger Asda for our customers and communities.”
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