In the second quarter, Asda reported a remarkable 9.6% increase in like-for-like sales, strongly influenced by its budget-friendly ‘Just Essentials’ range.
- Just Essentials, launched in May 2022, has quickly become Asda’s leading value brand, achieving an 87% growth year-on-year.
- With over 22 million customers purchasing from Just Essentials, it now holds a 20.2% market share.
- Price reductions on over 200 own-label items contributed to Asda’s continued growth, aiding consumers amidst rising living costs.
- Asda’s online presence remains strong, averaging 800,000 orders weekly, securing its position as the UK’s second largest online supermarket.
Asda has witnessed a significant surge in its sales, driven by the popularity of its low-cost Just Essentials range. During the second quarter, like-for-like sales increased by 9.6% as consumers were drawn to the value offered by Just Essentials. The brand, launched in May 2022, saw a year-on-year growth of an impressive 87%.
Since its introduction, Just Essentials has been embraced by over 22 million customers, propelling it to become the leading value range in the market with a substantial 20.2% share. This success underscores Asda’s commitment to offering affordable options to families amidst ongoing financial challenges.
Mohsin Issa, Asda’s co-owner, emphasised the company’s dedication to supporting customers facing cost-of-living pressures. He noted, “We know that thousands of families continue to struggle with the cost of living, and we’re committed to doing all we can to support them.”
This quarter, Asda maintained the prices of over 500 essential items and reduced prices on more than 200 own-label products, including fresh produce and ready meals, by an average of 9%. These strategic moves have been pivotal in retaining consumer loyalty and enhancing the brand’s market presence.
Asda’s clothing and general merchandise sectors also outperformed market expectations, with clothing sales growing by 2.8% and general merchandise increasing by 6.3%. The ‘Big Asda Toyshop’ promotion played a significant role in bolstering these figures. Additionally, Asda’s robust online shopping platform continues to thrive, processing around 800,000 orders weekly, reinforcing its status as the UK’s second largest online supermarket.
Michael Gleeson, Asda’s chief financial officer, remarked on the robustness of their customer proposition. He stated, “Our focus on providing great quality and affordable food, stylish clothing and homewares from George, and the ability to shop when and how they like, is clearly resonating with our customers.” Gleeson further noted the proactive approach of passing commodity price reductions, such as those in wheat and milk, back to customers, especially within their own-brand offerings.
Furthermore, Asda is progressing with the integration of 119 convenience stores acquired from The Co-op and aims to complete the acquisition of EG Group’s UK and Irish estate by the end of the fourth quarter.
Asda’s strategic emphasis on value through its Just Essentials range and proactive pricing strategies have effectively bolstered its market position amidst economic challenges.
