The resurgence of Tesco and Morrisons has hit Asda amid a period of “turbulence” in the supermarket sector, its chief executive has admitted.
The Walmart-owned chain reported a 3.9 per cent fall in first-quarter like-for-like sales.
Andy Clarke said: “We could not have foreseen what’s happened to others and the moves they have had to make to restore their business.”
The impact of the supermarket price wars, triggered by Aldi and Lidl, was laid bare as the UK entered deflation for the first time since 1960. Mr Clarke said Asda is shunning promotions to invest long-term in low prices.
Clive Black, an analyst at Shore Capital, expressed “surprise” at Asda’s sales slump. He said Tesco was probably winning shoppers back from all of its rivals, while Morrisons was regaining popularity in the North of England and the Midlands.Reuse content