Asda's sales set to slide yet again

 
Helen Cahill
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Leading UK Supermarkets Compete For Their Share Of The Market In The Run Up To Christmas
Asda seeks to be the lowest-price UK supermarket (Source: Getty)

Asda is expected to report another set of disappointing sales figures this week as the supermarket continues to face strong headwinds from the German discounters.

On Thursday, Asda will report a three per cent to four per cent fall in like-for-like sales for the full year, according to the Telegraph. Sales have been falling at the British supermarket, which is owned by American giant Walmart, for more than three years.

Before Christmas last year, Asda reported its ninth consecutive fall in quarterly sales, with like-for-like sales falling by 5.8 per cent. This followed on from a sales drop of 7.5 per cent in the prior quarter.

And the first quarter of this year has also proven difficult for the grocer. In the 12 weeks to 26 March, Asda's sales fells by 1.8 per cent, according to Kantar Worldpanel.

However, there are signs of improvement, as last month sales grew by 0.8 per cent, Kantar said.

The other "Big Four" supermarkets continued to outperform Asda, however, and the growth of its budget rivals, Aldi and Lidl, continues to be a problem for the business.

Asda remains the most price-competitive grocer, however, according to research by UBS. Food analyst Daniel Ekstein said that in April, a basket of groceries from Asda was 3.8 per cent cheaper than the market average.

Morrisons' shoppers were hit with relatively higher prices, Ekstein said, which he said was "a concern given its position as a value-led brand".

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