Asda has announced a significant investment of £13 million in store operating hours over the festive period, aiming to bolster customer service following a dip in third-quarter sales.
For the quarter ending 30 September, Asda reported a sales decline of 2.5%, bringing total sales, excluding fuel, down to £5.3 billion. Like-for-like sales experienced a steeper decrease of 4.8%, though this marks an improvement over the previous quarter. Asda’s strategic initiatives to enhance availability, improve the customer experience, and invest in value have begun to show positive results, as noted in the company’s second-quarter update.
To further these improvements, Asda is dedicating an additional £13 million to increase staff presence during the busy ‘Golden Quarter’, a crucial period for retail during the festive season. This investment is part of a wider effort to meet heightened customer demand and improve service quality in stores and online.
Chairman Stuart Rose commented, “We have undergone the largest transformation in our history during the last three years – doubling our store footprint, expanding into the strategically important growth markets of convenience and food-to-go, and overhauling our digital capabilities.” He emphasised the importance of delivering outstanding customer experiences consistently, recognising the temporary impact organisational changes have had on service.
Asda has also focused on expanding its Rewards loyalty app, which now plays a role in nearly 57% of all transactions, boasting over 6.8 million regular users since its launch in August 2022. The newly introduced ‘Rewards Mega Weekend Deals’ has attracted upwards of 300,000 new customers, contributing to a 1.2% increase in weekly sales participation.
The supermarket chain continues to enhance its product offerings, doubling the size of its premium ‘Exceptional’ range. This line features over 400 new products across various categories such as meat, fish, poultry, and bakery, with initial sales up by 98% compared to the previous year. Chief Financial Officer Michael Gleeson noted that while these strategies are yielding improvements, sustained growth requires ongoing effort.
Asda’s efforts to improve store standards and deliver a consistent shopping experience are evident in the better customer perceptions reported. The company’s George fashion brand has continued to outperform the market, and the quality and value of the new ‘Exceptional’ premium lines have been well received.
Asda’s investment in extended store hours marks a proactive approach to addressing sales challenges and enhancing customer service during the pivotal festive season. While the company has made significant strides in improving customer experience and expanding its product range, continued efforts will be necessary to achieve long-term growth.
