In response to a dip in third quarter sales, Asda is committing £13 million towards additional store hours to enhance customer service during the busy festive season.
Asda’s financial performance in the quarter ending 30 September showed a 2.5% drop in sales, excluding fuel, amounting to £5.3 billion. The like-for-like sales also saw a decrease of 4.8%. Despite these figures, the supermarket identified a slight improvement from the previous quarter this financial year. To counter this trend, Asda aims to strengthen its core strategies, focusing on availability, enhancing the customer experience, and investing in value.
This strategic investment comes as Asda seeks to improve customer perceptions regarding availability, both in-store and online. By injecting £13 million into store hours during the Golden Quarter, the company plans to ensure a greater presence of staff to support customers during the festive rush.
Asda’s chairman, Stuart Rose, highlighted the extensive transformations undertaken by the retailer over the past three years, including the expansion of the store footprint and developments in digital capabilities. He acknowledged the strain these changes placed on their leadership and its temporary effect on customer experience. However, Rose expressed a commitment to improving the in-store experience, particularly during the festive season.
The company’s value proposition includes its Rewards loyalty app, which has significantly impacted transaction volumes since its introduction in August 2022. It now features prominently in 57% of all transactions, boasting over 6.8 million regular users. Initiatives like the ‘Rewards Mega Weekend Deals’ have attracted over 300,000 new customers, boosting weekly sales by 1.2%.
Furthermore, Asda continues to focus on enhancing its premium offerings. The introduction of more than 400 new lines through its Exceptional range, covering categories such as meat, fish, poultry, and bakery, has seen a 98% increase in initial sales year-on-year.
Asda’s Chief Financial Officer, Michael Gleeson, remarked on the ongoing efforts to standardise store operations and improve the overall shopping experience. The George fashion brand maintains its market-leading performance, while the new Exceptional premium lines receive strong customer feedback for quality and value. Nevertheless, Gleeson acknowledged the necessity for continued effort to achieve sustained sales growth.
Asda’s strategic initiatives, including the £13 million commitment for festive season enhancements, reflect its determination to improve customer experience amidst sales challenges. These efforts aim to not only address current sales declines but also to lay a foundation for long-term growth.
