Asda’s investment of £13m in festive season operations follows a dip in Q3 sales.
- The retailer’s revenue fell by 2.5% to £5.3bn, with like-for-like sales down 4.8%.
- Improvement was noted compared to the previous quarter, despite sales declines.
- A strategy focusing on availability, customer experience, and value investment continues.
- The decision aims to enhance in-store experiences during the busy holiday period.
In a strategic response to a sales dip in the third quarter, Asda has announced a £13 million investment aimed at enhancing its store operations for the festive season. The grocery giant reported a 2.5% decrease in revenues, excluding fuel, amounting to £5.3 billion for the quarter ending 30 September. Like-for-like sales also saw a decline of 4.8%, though this marked an improvement from the preceding quarter.
The company reiterated its focus on key priorities identified in the second quarter, which included improving product availability, enhancing customer experience, and consistent value investments. This was supported by a previous £30 million investment in store hours, which Asda stated was already yielding positive results.
Asda intends to build on these improvements with an additional £13 million investment to extend store hours. This move is aimed at ensuring sufficient staff presence to assist customers during the peak shopping season. Stuart Rose, Asda’s chairman, highlighted the significant changes undertaken by the company over the past three years, including a doubling of the store footprint, expansion into critical growth areas such as convenience and food-to-go, and an overhaul of digital capabilities.
Rose pointed out that while these transformations laid a strong foundation for long-term growth, they also temporarily impacted customer experiences. He emphasised that Asda is committed to delivering an enhanced and consistent in-store experience, aligning with the company’s second quarter results shared in August. “We are pulling out all the stops for customers this Christmas and beyond,” remarked Rose.
Asda’s continued investment underscores its commitment to elevating customer satisfaction amidst recent challenges.
