Asda’s results for Q1 ended 31st March, show a 6.6% increase in total revenues (excluding fuel) to £5.3bn and 1.4% growth in like-for-like sales.
The supermarket’s continued growth in total revenues, like-for-like sales and margin improvement in food and non-food includes a particularly strong contribution from George at Asda, which outperformed the fashion and homewares markets during the quarter.
George, the UK’s third-largest fashion retailer by sales volume and the market leader in kidswear, grew its total clothing revenues by 3% to £293 million in the first quarter and by 3% on a like-for-like basis, as customers responded positively to its investment in price, style and quality credentials.
Top performing categories included schoolwear, where the durability and outstanding value of George’s market-leading range helped to drive an 11% increase in sales in Q1, and homewares, where sales rose 11.7% having been boosted by the launch of the brand’s new Stacey Solomon Spring / Summer collection.
Online grocery also continues to perform well – representing 18% of food sales, driven by a 5.6% increase in the number of average weekly orders in Q1.
Mohsin Issa, Asda’s Co-Owner, said: “Asda made good progress against its strategy in the quarter, laying the foundations for long-term success – including completing the conversion of our newly acquired sites to Asda Express, as part of our strategic expansion into the growth markets of convenience and food-to-go. We did this while continuing to deliver great range, value and convenience, including investing in lower prices and the quality of our food and non-food at a time when the household budgets of our customers remain under pressure.
“George at Asda again outperformed the value market in fashion and homewares, and it is very encouraging to see our investment in the brand bearing fruit both online and in stores. Customers also responded positively to our ongoing investment in the Asda Rewards loyalty scheme, which now has around six million regular users, and online grocery where we are firmly established as the number two player in the market. I want to sincerely thank all of our colleagues for their hard work over the quarter, as we remain committed to doing the right thing by them, our customers and the local communities which we serve.”
