Asda’s Christmas gross sales hit by ‘cautious’ spending

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Customer walks into AsdaImage copyright Getty Images

Asda has stated clients have been “cautious” over the Christmas interval because it revealed that its gross sales fell within the ultimate three months of final yr.

The grocery store chain’s like-for-like gross sales, which excludes cash taken on the tills of latest shops, have been 1.3% decrease than the yr earlier than.

“Whilst customers were enthusiastic for Christmas, they were more mindful in their spending,” stated Asda boss Roger Burnley.

Other supermarkets additionally noticed gross sales slip.

Sales at rival Sainsbury’s fell by 0.7% over an identical interval, whereas Tesco noticed a 0.2% decline and Morrisons recorded a 1.7% drop in gross sales.

“We know that our customers’ mind sets during the quarter were cautious,” Mr Burnley stated.

He stated many Christmas customers selected to pare again their reward lists and deal with shopping for presents for kids quite than adults and prolonged household.

Asda recognized the clothes market as being significantly difficult, nevertheless it didn’t publish clothes gross sales.

The difficult Christmas interval rounded off a tough yr for Asda, which had a deliberate merger with rival Sainsbury’s thwarted by the UK’s competitors watchdog.

The grocery store chain, which is owned by US retail large Walmart, additionally got here in for criticism after it threatened to fireplace 1000’s of workers until they signed a brand new contract that scrapped quite a few worker advantages in return for a small enhance in hourly wages.

“As ever, I am hugely grateful to our colleagues for their efforts for our customers this quarter,” Mr Burnley stated, including that Asda would pay a bonus to eligible workers later this month.