UK: Asda rounds off year with Q4 sales fall
- Q4 sales drop 0.1%
- UK operating income down 1.5%
Asda saw comparable sales drop 0.1%
Asda ended its 2013 financial year with a fall in underlying sales in the fourth quarter.
In the 13 weeks to the 3 January, Asda saw comparable sales drop 0.1%, underling the retailer's worsening sales performance as it moved throughout the year.
For its third quarter, like-for-like sales were up 0.3%. In the second quarter, LFLs were up 0.7%; in the first quarter, they increased 1.3%.
Over the year as a whole, Asda's comparable sales inched up 0.5%.
Asda parent Wal-Mart, which also issued its fourth-quarter and annual results today, said its UK arm saw its operating income fall 1.5% in the quarter thanks to "expense headwinds".
Wal-Mart cited "indirect taxation, employment costs and investments in e-commerce".
Asda CEO Andy Clarke said: "It will come as no surprise that 2013 was a tough year for UK retailers and there's little doubt that the UK retail market is undergoing significant and permanent structural change."
However, Clarke said Asda had moved to "redefine value retailing in the UK" and pointed to its announcement in November it would spend GBP1bn on lowering prices in a bid to "widen the gap" with its big three rivals, Tesco, Sainsbury's and Morrisons.
The offensive on price was one of a set of "strategic priorities" for the next five years.
Asda plans to spend GBP250m on "quality, style and design" across its product portfolio and expand further in parts of the UK where its market share is low, particularly London and the South East. It also plans more investment online, with a target of 1,000 click-and-collect points in the next five years.
One of the biggest challenges - and opportunities - facing the apparel industry in 2015 is how best to embrace the omni-channel retail model, improve the shopping experience, and respond with new supp...
UK supermarket brand George at Asda is on a journey to a more sustainable supply chain through its Responsible Retail programme. Lynne Tooms, senior director of quality and sourcing, explains why reta...
More than 220 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in ...
Global technology and innovation executive Mike McNamara has left Tesco to join retail giant Target Corp as chief information officer....
- Under Armour on track with new UAS sportswear line
- Myanmar garment exports surged 20% in 2015
- EU trade ministers push on TTIP and Canada pacts
- Unravelling cotton's supply and demand challenges
- What does the future hold for world wool supply?
- US retailers urge action on Hanjin Shipping crisis
- Zara launches eco-friendly Join Life collection
- Adidas unveils first Speedfactory running shoe
- Bangladesh calls for US duty-free apparel access
- Ascena Retail disappoints amid challenging year
- Too Many Standards
- Apparel (GLOBAL) - Industry Report
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Ralph Lauren Corporation : Retailing - Company Profile, SWOT & Financial Analysis
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras