Sales boost for Asda
27/07/2005 - 18:20:32Supermarket group Asda received a boost today when figures suggested a recent downturn in its sales performance had stabilised.
The company’s share of the UK grocery market rose to 16.6% in the 12 weeks to July 17 from 16.4% last month, according to market research group TNS Superpanel.
The UK’s second biggest grocer, owned by US firm Wal-Mart, recently revealed quarterly operating profits had been below hopes after it endured a “challenging” period.
It has responded to the competitive environment by cutting prices on food and improving the assortment and quality of its private label products.
The figures will come as a boost to new chief executive Andy Bond, who was appointed in March.
Peter East, director at TNS Superpanel, said: “This turnaround may be partly driven by increased levels of price promotional activity.”
Elsewhere, market leader Tesco continued to move ahead, with its share rising to 30.4% from 28.1% in the same period last year. Asda was folloed by Sainsbury’s, whose share rose to 15.9% from 15.5%.
The figures also showed that Somerfield’s market share increased to 5.8% from 5.7% after the acquisition of smaller Safeway stores.
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