Asda has this week updated the business world on its trading for the second quarter of 2024, and amongst the latest figures on its clothing, online sales and store velopment, there was plenty to interest the convenience sector.
In Q2 alone, Asda completed the conversion of 478 convenience sites acquired from both the Co-op and EG UK to its Asda Express format, and the retailer says it is set to open an additional 11 convenience stores under that branding by the end of the year. These will bolster Asda’s presence within inner city locations, bringing its “heritage in uncompromising value to more communities,” the report reveals.
However, not all the figures in the report made for such positive reading. The supermarket has reported a 2.2% decline in total revenues (excluding fuel) to £5.3bn in Q2, with like-for-like sales 5.3% lower.
Attention was instead directed to the growth for its clothing brand, George, which showed store sales up 88% compared to last year, across the first two weeks alone of its back to school campaign.
The report also heralded the launch of a £50m store upgrade programme, with 130 of these already receiving a major refresh, while the loyalty app Asda Rewards has grown to participation in 52% of transactions in just two years. Additionally, 18% of its total food revenue is now accounted for by online sales, showing a slight increase of 1.4%.
Michael Gleeson, chief financial officer at Asda, said: “We’ve made great progress over the last few years in transforming Asda into a diversified retail group, much of which is almost complete. However, we know there are some areas where we can and need to improve.
“We remain confident in the underlying strength of the Asda business as we execute our long-term growth strategy.”
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