Asda News Update: Sales Slump

asda sales slump

Asda News Update: Asda have experienced a massive decline in sales and are being taken over by rivals such as Sainsbury’s who are traditionally more expensive.

As the economic climate has fallen upon hard times the past couple of years, food shops have especially noticed a change in customer sales as switching between shops with better pricing becomes all the more important to regulate a households spendings. Asda have suffered the most, as rival Sainsbury’s has also overtaken it in popularity stakes.

“Asda, the UK’s second biggest supermarket, is suffering hardest from the squeeze as customers switch to cheaper rivals and the number three supermarket, Sainsbury’s, threatens its position.

Fraser McKevitt, a retail analyst for Kantar, said: “The jury is slightly out at the moment on when Sainsbury’s will overtake Asda. The latter tends to do very well in the summer period, with non-food as families buy barbecues and beachballs, but Sainsbury’s usually improves around Christmas.

“Sainsbury’s seem to have cracked the fine line between price and quality, while doing well in convenience and online. Asda will be looking at how to run their online business and transforming its Netto convenience stores as effectively as possible.”

Sainsbury’s market share in the 12 weeks to 9 June was 16.7%, up from 16.6% a year ago, while Asda fell from 17.2% to 16.9%, according to Kantar.

Discounters continue to take customers from their bigger rivals as Aldi’s market share hit a record 3.6% for the three month period, up by nearly a third from a year earlier, while rival Lidl now controls 3% of the market. Waitrose, part of the John Lewis Partnership, also recorded an impressive growth, taking 4.9% of the market from 4.6% a year earlier.

McKevitt suggested this was not because of a growing disparity between rich and poor, but more because both ends of the high street were drawing customers away from bigger rivals. He said: “They are fighting over the middle ground. The discounters have introduced varying products like fresh food in the hope to attract shoppers from others, while Waitrose has managed to convey the message that their prices are not as high as people might think.

“People used to see the discounters as attracting a less-affluent shopper, but that is moving. It’s no secret people are shopping around looking for the best value. If you have the time to shop around, you get the reward for that.”

An average spend at Lidl is still under £20, suggesting customers are using the discounters to top up their shopping, he added.

Tesco is still the biggest supermarket with a market share of 30.5%, down from 31% last year.”

It is interesting to see that it is the very lower end priced supermarkets such as Aldi and Netto, as well as the very high priced supermarkets such as Waitrose which have been kept afloat in times of careful spending. Is this showing the ever increasing equality gap between the population of the UK today? Seeing how Asda reacts to this price slump will be interesting and whether sales are going to be looking more prosperous in the future. If you require any more information on the products or service Asda provide please call the Asda Helpline.

Original article can be found at http://www.guardian.co.uk

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