Asda has increased its sales for the second quarter in a row, but warned today that the market will be "challenging" next year.
For the third quarter ended 30 September, Asda's sales grew 1.1 per cent. Total sales were up 3.6 per cent.
Why it's interesting
Discounters Aldi and Lidl have been posing a significant challenge for Asda, but there are signs that the business is starting to grow its sales again. UK supermarkets have been increasing prices this year in response to the devaluation of sterling, and boosting sales as a result.
Asda has undertaken a shake-up of its top team as it continues its turnaround. Chief executive Sean Clarke is stepping down and Roger Burnley, the supermarket's chief operating officer, will lead the business from 1 January.
What Asda said
Clarke said: "It's great to see that we have now delivered our second consecutive quarter of positive like-for-like growth, and the fifth consecutive quarter of continued sales improvement.
"The market environment will continue to be challenging into next year but we're well placed with clear plans and a renewed level of confidence."