Asda sales drop as £15bn cost of living package not enough, says boss

// Asda first-quarter sales drop against strong like-for-like comparables

// The grocer said like-for-like sales fell 9.2% in the three months to March 31, 2022

Asda has seen its first-quarter sales decline against strong like-for-like comparables thanks to the squeeze from the cost-of-living.

The grocer said like-for-like sales fell 9.2% in the three months to March 31, 2022, compared with an “exceptional period” in the first quarter of 2021.

Food sales for the period were down 7%, while clothing sales declined 19.3% and general merchandise sales dropped 23.7%.

Asda said that during the period “households were squeezed by the removal of Ofgem’s price cap, resulting in gas price inflation of 95% and electricity prices rising by 53% in April”.

With inflation affecting food prices, Asda’s Income Tracker recorded that household disposable income fell to an average of £205 per week – the lowest figure since October 2018.

Asda chairman Lord Stuart Rose said the government’s £15 billion cost of living handout is not enough to help struggling families and only a “drop in the ocean” compared with the pressures consumers are facing.

Rose said he welcomed the one-off payments by chancellor Rishi Sunak, worth a minimum of £400 for all households and up to £1,200 for the poorest, but “there is still going to be continuing pressure and a lot of toughness for people”.

He expects inflationary pressures to continue into next year.

Asda has invested £90 million into expanding its new Just Essentials value range and dropping and locking the prices of more than 100 family-favourite products until the end of the year.

During the period, Asda also announced it would increase hourly pay for shopfloor staff from £9.66 to £10.10 per hour from July of this year.

Asda co-owner Mohsin Issa said: “The latest Asda Income Tracker highlights the stark reality facing millions of families in the UK right now with household incomes more squeezed than ever.

“Asda has a strong heritage of investing in price and customers can trust us to be on their side when they need it the most.

“We are investing in helping our shoppers manage the challenges of the here and now, as well as progressing critical strategic initiatives including loyalty, convenience and enhancing our in-store offering, which will all deliver long-term value.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

The post Asda sales drop as £15bn cost of living package not enough, says boss appeared first on Retail Gazette.

from Retail Gazette https://ift.tt/SLbrQAg
via IFTTT

Comments

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...

Coronavirus Recovery: Canadian Small Businesses Must Focus on Easing Employee, Customer Fears

By M. Tina Dacin and Laura Rees A small business has been given the green light to reopen amid the COVID-19 pandemic . What does it need to consider for employees and customers? Small business owners are reorganizing physical space to account for continued distancing requirements and rethinking supply chains to deliver products and services in new ways to meet changing demand patterns. But they must not forget the hearts and minds of employees and customers. That doesn’t mean replacing a focus on the bottom line, but it helps address the need for a new set of expectations and ways of communicating in terms of product or service offerings, delivery methods and real-time feedback. Based on our expertise in organizational behaviour and past research we’ve conducted, we provide a set of recommendations to help small businesses thrive in our new COVID-19 economy by looking after the hearts and minds of the people most important to businesses — employees and customers. Fear, Anxi...

World's 1st Pizza Subscription Service Launches in Toronto

general assembly subscription user opening delivery box of pizza. photo: general assembly pizza By Mario Toneguzzi Toronto-based General Assembly Pizza has launched what it describes as the world’s first pizza subscription service as it also plans to aggressively expand its product offering in the near future by opening a new concept in the market. "Since opening our doors in 2017, we have pushed for the best guest-experience possible — that's why our dough is 100 percent naturally leavened, that's why we have a purpose-built 400-square-foot pick-up and delivery area, and that's why we’ve launched a direct-to-consumer subscription-based ecommerce platform,” said Founder & CEO Ali Khan Lalani. “In 2020, providing the best guest experience means General Assembly Pizza has to be more than a restaurant. I'm proud to say that after almost six months of planning, many roadblocks, and countless pivots — all while maintaining our day-to-day restaurant operatio...

Latest Retail Insight, News, Information & Articles from all top sources for the Internet.

Search This Blog