Asda has released its third quarter results for 2015 with like-for-like sales dropping 4.5%. However, an uptick was seen in online orders, with grocery sales growing 6% for the 13 weeks to 30 September.
Alongside food, Asda sells a wide array of health and beauty products, stocking brands such as Olay, Aussie, TRESemmé, Rimmel and Max Factor, among many others. Asda did not respond to Cosmetics Business’ enquiries into a breakdown of the personal care category’s performance.
Speaking about overall results, President and CEO Andy Clarke, said: “There’s no doubt this represents another challenging quarter. Sales volumes remain under pressure from price deflation and the intensely competitive background remains throughout the food sector. Having said that, we have the financial strength and clear plan to sustain us through this period, while we take appropriate and considered action to further strengthen our competitive position.”
The retailer has suffered financially in recent months, leading to Clarke forming Project Renewal last month, an 18-month programme designed to return the company to long term, sustainable volume growth.
Clarke explained that Project Renewal would focus on a “simpler way of doing business”. He said that among the project’s priorities was working closely with suppliers on a range review programme to cut 10% of products as part of a duplication removal process. He also explained that there would be investments made in-store, with a revamp of 95 large stores in the pipeline.
He said: “This is a logical and necessary adjustment of our existing strategy, to better address the immediate challenges and permanent changes the market is facing. It is a slow and costly process to reconfigure any business to meet fundamental challenges on this scale, but I’m clear that only businesses which are well positioned, financially strong and able to efficiently deliver what their customers want can be successful in this environment.”
