Asda has seen a significant rise in sales, primarily driven by its Just Essentials range.
- The supermarket’s like-for-like sales increased by 9.6% in the second quarter.
- Just Essentials, launched last year, witnessed a remarkable 87% growth year on year.
- The budget brand now holds the title of the ‘number one value range’ with 20.2% market share.
- Asda continues strategic expansions and price reductions in various categories.
Asda has reported a notable increase in its sales figures for the second quarter, largely propelled by its budget-friendly Just Essentials range. The supermarket’s like-for-like sales experienced a 9.6% surge as consumers flocked to purchase from this economical line of products.
Since its introduction in May 2022, Just Essentials has gained significant traction, with sales soaring by an impressive 87% year on year. This range has become the ‘number one value range’ in the market, achieving a 20.2% share. Over 22 million customers have engaged with Just Essentials, underscoring its popularity and appeal amidst growing cost of living concerns.
Asda’s commitment to supporting families facing economic challenges is evident in its pricing strategies. According to Mohsin Issa, Asda has locked the prices of over 500 everyday items and reduced the price of more than 200 own-label products by an average of 9%, including essentials such as fresh produce and ready meals.
The supermarket’s clothing and general merchandise divisions have also shown robust performance, surpassing broader market trends. Clothing sales, under the George brand, saw a 2.8% growth, maintaining strong full-price sales. Furthermore, general merchandise sales climbed by 6.3%, with initiatives like the ‘Big Asda Toyshop’ proving successful.
On the digital front, Asda’s online operations remain strong, delivering an average of 800,000 orders weekly, upholding its status as the UK’s second largest online supermarket. Moreover, the integration of 119 convenience stores from The Co-op is underway, alongside plans to finalise the acquisition of EG Group’s UK and Irish estate, reflecting Asda’s strategic growth ambitions.
Asda’s strategic focus on affordability and expansion is evidently resonating with consumers, driving substantial growth across various facets of its business.
